Profit Maximizer (PMAX)
An ATR-based trailing trend band: a buy when price closes above it, a sell when it closes below.
How to read it
PMAX is a trailing line, based on a moving average and an ATR band, that sits below price in an uptrend and above it in a downtrend. When price closes through the line, PMAX flips to the other side and its colour changes.
Trading signals
The flip is the signal: price closing above a falling PMAX turns it green and starts a long; closing below a rising PMAX turns it red and starts a short. The line then trails the trade as a stop. It excels in trends and chops in ranges.
Parameters
PMAX Period sets the ATR window and PMAX Multiplier its distance — a bigger multiplier keeps the line farther from price, so it flips less often. PMAX MA Length is the moving average the band trails.
- PMAX Period
- Bars for the ATR that PMAX uses.
- PMAX Multiplier
- ATR multiplier that sets the trailing-band distance.
- PMAX MA Length
- Bars in the moving average PMAX trails.