CHANDELIER EXIT Trading Guide

The Chandelier Exit is designed to automatically detect trailing stop loss levels to help traders stay in a trend until a defined reversal occurs. Based on the Average True Range (ATR), this indicator hangs a trailing limit "from the ceiling" during an uptrend or "from the floor" during a downtrend, adapting to natural market volatility to prevent premature exits.

What does the indicator show?

• Long Stop Line: A dynamic trailing support level drawn underneath the price action during a confirmed bullish trend.
• Short Stop Line: A dynamic trailing resistance level drawn above the price action during a confirmed bearish trend.
• Trend Fills: Softly colored background clouds filling the space between the candlestick bodies and the protective stop line, giving instant visual clarity on market posture.
• Buy / Sell Labels: Explicit entry and exit marker texts placed directly on the chart exactly when the price crosses the trailing stop boundaries.
• Target Lines (SL/TP): Optional fixed Stop Loss and Take Profit lines generated instantly upon signal execution, projecting calculated risk-reward scenarios.

Key Settings

• ATR Period: The historical lookback period used to measure underlying volatility.
• ATR Multiplier: The spacing factor applied to the ATR. A higher multiplier gives the trade more "breathing room", while a lower multiplier creates a tight trailing stop.
• Additional SL % / TP Ratio: Options to customize projected hard Stop Loss margins and profit targets based on automated risk-to-reward mechanics.
• Use Close Price: Toggles the trailing calculation logic to read exclusively from the closing prices instead of the extreme high/low wicks.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.

1. Core Signal Indicators

Track the directional signals fired by crossovers.

• buySignal — An immediate trigger sent the moment the directional trend switches from short to long.
• sellSignal — An immediate trigger sent the moment the directional trend switches from long to short.
• buySignalsCount — The total sum of buy signals fired over the user-defined lookback window.
• sellSignalsCount — The total sum of sell signals fired over the user-defined lookback window.

2. Trend States & Line Values

Evaluate continuous positional logic or numeric outputs.

• isLong — A state flag remaining continuously true while the asset trades above the long stop indicator.
• isShort — A state flag remaining continuously true while the asset trades below the short stop indicator.
• longStop — The actual numeric price level of the bullish trailing support line.
• shortStop — The actual numeric price level of the bearish trailing resistance line.

Strategy Example: If you are looking to enter a Long position, you could add a condition: buySignal == true. You can then use the longStop variable as a dynamic exit parameter within the strategy menu to perfectly simulate a trailing stop.