Pricing entries, stops and exits in range units

Price every decision in one range unit

The archive workflow writes long-side entry, trail and take-profit in one shared distance. Average-true-range averages, over a chosen lookback, the greatest of each bar’s high-to-low span, the gap from the prior close to the high, and the gap from the prior close to the low. That figure is the shared distance unit for entries and stops.

Apply a weekly rising-trend-filter first

Volatility formulas are applied only after a weekly rising-trend-filter. That precondition is higher highs and higher lows, closes above a 34-week moving average, and a rising 34-week average. No daily signal is considered until this weekly gate is in place.

Wait for temporary weakness

On the daily chart, a seven-period relative-strength-index at 30 marks temporary oversold conditions inside that weekly uptrend before a later entry is considered. Relative-strength-index is a lookback comparison of average rising closes to average falling closes, used here only to wait for temporary weakness inside an established uptrend. Because entry waits for that oversold reading first, the opening segment of each advance is intentionally skipped.

Write the volatility-entry

After the oversold wait, the long entry rule is a close greater than the lowest low of the prior 20 days plus twice the 10-day average-true-range. That volatility-entry is a long trigger when the close exceeds the 20-day lowest low by twice the 10-day average-true-range after an oversold reading.

Place a volatility-stop that cannot drop

An initial stop is placed just under the recent low. The trailing stop is two times the 10-day average-true-range subtracted from the close and is not lowered. A volatility-stop is a loss bound set from recent range before entry and updated while the position is open, without being allowed to drop.

To keep the trail from dropping, the trailing-volatility-stop is held at the highest value of close minus twice the 10-day average-true-range over the last 15 periods, and exit is taken after two consecutive closes beneath it. A separate rule exits when the close falls below the highest high of the prior 20 days minus twice the 10-day average-true-range.

Add a volatility-profit-line

A volatility-profit-line is a shorter-horizon overextension line equal to a 13-period exponential average of highs plus twice the 10-day average-true-range. A clear close above it is treated as a take-profit cue, with the position closed on the next open.

Keep the choices inside one procedure

The same range distances are written as entries, trailing stops, and profit-taking so those choices are specified as one procedure rather than timed by opinion. That complete sequence is a rule-based-entry: it states entry, exit and abstention as one procedure rather than separate hunches.