Chande Kroll Stop

Chande Kroll Stop indicator for NT8

This is an implementation of the volatiliy based stop that was suggested by Tushar Chande and Stanley Kroll in their book “The New Technical Trader”. It is a trend-following indicator, identifying your stop by calculating the average true range of the recent market volatility.

Indicator Description

The Chande Kroll Stop indicator comes with a long stop line (blue) and and a short stop line (red). Your stop is then  placed under (and on) the high / low of the last “n” bars. The difference corresponds to the average True Range on “N” bars.

The Chande Kroll Stop will protect your profits by enabling a trade to remain open as long as it is moving in the right direction. The trailing stop is flexible and does not have to be manually reset like the fixed stop loss. Your long position should be closed once prices drop below the blue line. Conversely, your short positions should be closed if prices move above the red line.

Finally, you may also used the Chande Kroll Stop to spot trend changes. A new uptrend is found when the blue line crosses above the red line. A new downtrend is found when the red line crosses below the blue line.

The Chande Kroll Stop is found in our Trailing Stops category along with other indicators designed to protect open profits. The general concept for these indicators is to keep your position open as long as it moves in your direction. These trailing stops are flexible, automatically tracking price and do not have to be manually reset. Positions should be closed if the price goes against the trade by a specified percentage or amount.

Other Library Indicators

Other than the Chande Kroll Stop the following indicators are available from the trailing stop loss category: ATR Trailing Stop, Chandelier StopDeviation Stop, HiLo Activator, SuperTrend M11, SuperTrend U11 and the Wilders Volatility Stop. Additional indicators are available from our trend analysis, channel indicators and momentum oscillators categories, such as the Donchian Channel, Daily Regression Channel, Balanced Momentum, Traders Dynamic Index, and the Know Sure Thing (KTS).

The Chande Kroll Stop is available for NinjaTrader 8. Our Indicator Spotlight newsletter also discussed the ATR Trailing Stop and the Wilder Volatility Stop in two separate posts.