//@version=6
strategy("ALDER price approximation", overlay = true,
  initial_capital = 10000, pyramiding = 0,
  default_qty_type = strategy.fixed,
  default_qty_value = 1,
  commission_type = strategy.commission.cash_per_order,
  commission_value = 2, slippage = 1,
  margin_long = 100, margin_short = 100)
n = input.int(5, "Formation sessions", minval = 2)
multiple = input.float(2, "Range multiple", minval = 0.1)
if not timeframe.isdaily
    runtime.error("Use daily bars for this lesson")
ceiling = ta.highest(high, n)[1]
average = ta.sma(close, n)
rangeMean = ta.sma(ta.tr(true), n)
ready = not na(ceiling) and not na(rangeMean)
signal = ready and close > ceiling and close > average
var float distance = na
var float highestClose = na
var float stopPrice = na
flat = strategy.position_size == 0
justExited = ta.change(strategy.closedtrades) > 0
if barstate.isconfirmed and flat and not justExited
    if signal
        distance := math.ceil(rangeMean * multiple /
          syminfo.mintick) * syminfo.mintick
        highestClose := na
        stopPrice := na
        strategy.entry("L", strategy.long)
        strategy.exit("X", "L", loss =
          math.round(distance / syminfo.mintick))
if barstate.isconfirmed and strategy.position_size > 0
    highestClose := na(highestClose) ? close :
      math.max(highestClose, close)
    initial = strategy.position_avg_price - distance
    candidate = math.max(initial, highestClose - distance)
    stopPrice := na(stopPrice) ? candidate :
      math.max(stopPrice, candidate)
    strategy.exit("X", "L", stop = stopPrice)
plot(ceiling, "Prior high", color.gray)
plot(average, "Simple average", color.blue)
plot(flat ? na : stopPrice, "Next stop", color.red,
  style = plot.style_linebr)