OPEN-SOURCE SCRIPT
Chandelier Exit by fr3762 KIVANÇ
Chandelier Exit
Developed by Charles Le Beau and featured in Alexander Elder's books, the Chandelier Exit sets a trailing stop-loss based on the Average True Range (ATR). The indicator is designed to keep traders in a trend and prevent an early exit as long as the trend extends. Typically, the Chandelier Exit will be above prices during a downtrend and below prices during an uptrend.
The author, Chuck LeBeau explains: It lets "... profits run in the direction of a trend while still offering some protection against any reversal in trend."
According to the theory, traders should exit long positions at either the highest high since entry minus 3 ATRs .
Similarly traders should exit short positions at either the lowest low since entry plus 3 ATRs .
The exit stop is placed at a multiple of average true ranges from the highest high or highest close since the entry of the trade.
Chandelier Exit will rise instantly whenever new highs are reached. As the highs get higher the stop moves up but it never moves downward.
The Chandelier Exit is mostly used to set a trailing stop-loss during a trend. Trends sometimes extend further than we anticipate and the Chandelier Exit can help traders ride the trend a little longer. Even though it is mostly used for stop-losses, the Chandelier Exit can also be used as a trend tool. A break above the Chandelier Exit (long) signals strength, while a break below the Chandelier Exit (short) signals weakness. Once a new trend begins, chartists can then use the corresponding Chandelier Exit to help define this trend.
Developer: Charles Le Beau
Developed by Charles Le Beau and featured in Alexander Elder's books, the Chandelier Exit sets a trailing stop-loss based on the Average True Range (ATR). The indicator is designed to keep traders in a trend and prevent an early exit as long as the trend extends. Typically, the Chandelier Exit will be above prices during a downtrend and below prices during an uptrend.
The author, Chuck LeBeau explains: It lets "... profits run in the direction of a trend while still offering some protection against any reversal in trend."
According to the theory, traders should exit long positions at either the highest high since entry minus 3 ATRs .
Similarly traders should exit short positions at either the lowest low since entry plus 3 ATRs .
The exit stop is placed at a multiple of average true ranges from the highest high or highest close since the entry of the trade.
Chandelier Exit will rise instantly whenever new highs are reached. As the highs get higher the stop moves up but it never moves downward.
The Chandelier Exit is mostly used to set a trailing stop-loss during a trend. Trends sometimes extend further than we anticipate and the Chandelier Exit can help traders ride the trend a little longer. Even though it is mostly used for stop-losses, the Chandelier Exit can also be used as a trend tool. A break above the Chandelier Exit (long) signals strength, while a break below the Chandelier Exit (short) signals weakness. Once a new trend begins, chartists can then use the corresponding Chandelier Exit to help define this trend.
Developer: Charles Le Beau
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Telegram t.me/AlgoRhytm
YouTube (Turkish): youtube.com/c/kivancozbilgic
YouTube (English): youtube.com/c/AlgoWorld
YouTube (Turkish): youtube.com/c/kivancozbilgic
YouTube (English): youtube.com/c/AlgoWorld
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Telegram t.me/AlgoRhytm
YouTube (Turkish): youtube.com/c/kivancozbilgic
YouTube (English): youtube.com/c/AlgoWorld
YouTube (Turkish): youtube.com/c/kivancozbilgic
YouTube (English): youtube.com/c/AlgoWorld
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.