trailing stoploss technique - Chandelier Exit (CE)
it is a volatility-based trailing stoploss indicator based on the Average True Range (ATR). it show 2 lines – the chandelier exit long and the chandelier exit short.
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it is a volatility-based trailing stoploss indicator based on the Average True Range (ATR). it show 2 lines – the chandelier exit long and the chandelier exit short.
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The exit long is used as trailing stoploss for long positions whereas the exit short is used as trailing stoploss for short positions.
The Chandelier long and short are used to compute the value of ATR.
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The Chandelier long and short are used to compute the value of ATR.
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Then, using the recommended setting of 21 periods, Chandelier exit will calculate the highest high or the lowest low for the same period used to calculate ATR. Lastly, subtract the multiple ATR (recommended setting - multiple of 3 times the Average True Range)
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from the figure obtained 4 the highest high, & add multiple ATR to the value obtained 4 lowest low
The formulas for the two lines are as follows:
Chandelier Exit Long: n-day Highest High – ATR (n) x Multiplier
Chandelier Exit Short: n-day Lowest Low + ATR (n) x Multiplier
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The formulas for the two lines are as follows:
Chandelier Exit Long: n-day Highest High – ATR (n) x Multiplier
Chandelier Exit Short: n-day Lowest Low + ATR (n) x Multiplier
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