Chandelier Exit is a volatility based indicator created to help a trader stay in a trade until there is a definite trend reversal. We all know that by avoiding early exits we can get more returns in pips from each position. I hope using the Chandelier Exit indicator will help you with that.
The Chandelier Exit indicator uses volatility based algorithms and the ATR – Average True Range and also provides a reliable trailing stop loss. All these help a trader stay in the trend as long as possible and avoid early exits. In addition to this, the indicator generates reliable entry points upon crossover of the indicator and price.
By adjusting the Average True Range multiplier, a trader can further customize the indicator to suit different trading instruments. As a result, this MetaTrader indicator provides all necessary inputs to trade the trend successfully.
Chandelier Exit Indicator Installation
1. Unzip the file you’ve downloaded.
2. Find the file that is called “ChandelierExit.ex4″/”chandelier-exit-indicator.ex5” and copy it.
3. Open your MT4/MT5.
4. Go to “File – Open Data Folder – MQL4/MQL5”.
5. Paste the file into the “Indicators” folder in MQL4/MQL5.
6. Restart your MT4/MT5.
After the installation, your MT4 trading chart will look like this:
How to trade with the Chandelier Exit Indicator
Entry signals of the Chandelier Exit indicator are simple and straightforward. You simply need to wait for the color change: appearance of an orange line means a BUY order while a magenta line indicates that you need to open a SELL order.
The stop loss level appears above the price during a downtrend. Oppositely, during an uptrend, the Chandelier exit indicator displays the stop loss level below the price.
The stop loss levels change according to the ATR values and the ATR multiplier used in the indicator parameters. The stop loss changes dynamically and helps the forex trader stay in the trend as long as possible. As a result, the trader can ride the trend until its exhaustion. The dynamic stop-loss also acts as a trailing stop loss level to protect an existing trade.
Examples of the trades
My conclusion on the Indicator
To my mind, this indicator is a very reliable tool for both new and experienced forex traders because it is easy and simple to interpret in terms of entry signals and exit levels. Moreover, professional forex traders can adjust the ATR –Average True Range values to calculate the exit levels that will suit their personal preferences. Please try out the indicator and let me know what you think about it!
P.S.S. Check out software by Altra Forex Group here