All the following is based on a long position example.

The current trailing stop line should just hang 2X ATR(14) from the highest close.

For a new higher close, the trailing stop immediately moves up to be 2x ATR(14) under the new higher closing price.

Once a new bar closes lower , the 2x ATR(14) value of that bar is now deducted from the previous highest close.

If the current bars 2xATR(14) deducted from the highest close means the trailing stop would now hang further away, it stays horizontal.

If the current bars 2x ATR(14) deducted from the highest close means the trailing stop would now be closer to current price, it steps up.

It now steps up to hang down  2xATR(14) from that prior highest close.

Hope that makes sense.

Basically it would be a very responsive trailing stop that sometimes moves every single bar if volatility is decreasing but we are not getting new higher closes.

The work you’ve done so far is great. The indicator is getting extremely close to perfect.

Kind Regards Simon