Chandelier Stop

Chandelier Stop aka Chandelier Exit for NT8

Introduced by Charles LeBeau, one of the first system traders, the chandelier stops takes the highest high from your entry position and deducts a multiple of the average true range to calculate the stop loss. Subsequently, the exit is moved up proportionally whenever a new high is made.

Indicator Description

A long position Chandelier Stop Loss takes the highest high from your entry and deducts a multiple of the average true range to calculate the stop level. Whenever a new high is made, the exit is moved up proportionally, protecting your profit. The indicator is also known as Chandelier Exit for trend following systems.

Therefore, the Chandelier Stop Loss adjusts according to the current market volatility. This version of the Chandelier Exit also comes with the Donchian Anchor. A long stop is then calculated by subtracting a multiple of the average true range (ATR) from the lowest high. A short stop using the Donchian Anchor is calculated by adding a multiple of the average true range from the highest low.

Other Library Indicators

Other than the Chandelier Stop Loss the following indicators are available from the trailing stop loss category: ATR Trailing Stop, Chande Kroll StopDeviation Stop, HiLo Activator, SuperTrend M11, SuperTrend U11 and the Wilders Volatility Stop

Our Indicator Spotlight newsletter also discussed the ATR Trailing Stop and the Wilder Volatility Stop in two separate posts.

The Chandelier Exit is available for NinjaTrader 8.