Suppose you find a chart pattern or setup, such as divergence or a in the , a pattern on the ASI, and/or on the chart, or the end of an , etc and want to confirm a strong breakout and ride it to the end. Many trailing stops won't be able to confirm the beginning or would last too long or not long enough to exit out of one. On an uptrend, when the price breaks below the last swing low , it can confirm the end of the breakout. On a downtrend, when the price breaks above the last swing high , it can confirm the end of the breakout.
This trailing stop is not meant to replace trend following ones. The swing can vary yet the price can still continue at an uptrend whereas this heiken ashi based trailing stop exits as soon as it goes above or below the last resistance point. These swing points can end up being too close for trend following but can work well for breakout trading. The bigger the chart pattern or breakout, the more reliable the exit signal will be in my opinion. This is an experimental idea that I came up with from trying to interpret the ASI.
-The chart (if still available) includes an illustration of how a breakout trade might take place and how the trailing stop can help confirm an entry and exit.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.