{
  "kind": "illustrative",
  "source": {
    "label": "Constructed ATR stop arithmetic",
    "note": "Supplied highest-close and ATR values illustrate two stop formulas at a 3\u00d7 multiple, assuming the entry price is no higher than the first shown highest close. This is not a complete trade, market history, or a list of backtest fills."
  },
  "description": "The highest close stays at 104 while ATR rises from 2 to 4. A freshly calculated 3\u00d7 ATR line falls from 98 to 92; a ratchet remains at 98.",
  "x": [
    "1",
    "2",
    "3",
    "4",
    "5",
    "6",
    "7",
    "8"
  ],
  "panels": [
    {
      "label": "Highest close and stop levels (price units)",
      "series": [
        {
          "id": "high",
          "label": "Highest close",
          "color": "price",
          "values": [
            100,
            102,
            104,
            104,
            104,
            105,
            105,
            105
          ]
        },
        {
          "id": "adaptive",
          "label": "Highest close \u2212 3 \u00d7 current ATR",
          "color": "amber",
          "values": [
            94,
            96,
            98,
            95,
            92,
            96,
            99,
            97.5
          ]
        },
        {
          "id": "ratchet",
          "label": "Ratchet",
          "color": "blue",
          "dashed": true,
          "values": [
            94,
            96,
            98,
            98,
            98,
            98,
            99,
            99
          ]
        }
      ]
    },
    {
      "label": "ATR (price units)",
      "domain": [
        0,
        5
      ],
      "series": [
        {
          "id": "atr",
          "label": "ATR",
          "color": "purple",
          "values": [
            2,
            2,
            2,
            3,
            4,
            3,
            2,
            2.5
          ]
        }
      ]
    }
  ],
  "annotations": [
    {
      "index": 4,
      "title": "Volatility widens the distance",
      "text": "ATR doubles while the highest close is unchanged. Recalculating the distance lowers the adaptive line by 6 price units. The ratchet retains its earlier 98 level."
    }
  ],
  "precision": 2
}