Traders often use the volatility stop to protect trades dynamically, adjusting the stop price gradually based on the asset's volatility.
Just like the volatility stop is a great way to capture trend reversals on the downside, the opposite applies as well. Therefore, another useful application of the volatility stop is to add it to a trading system to signal...
This is an RSI Swing Trading System roughly translated from backtestwizard.com . It uses ATR for profit target & stops. It uses a 26 week EMA filter to go long.