The Chandelier Exit is translated as a “suspended” stop.
The calculation of a trailing stop is based on either the maximum value of the maximum price or the maximum value of the closing price over a define time period.
The distance from the maximum point to the trailing stop is the trailing stop is best calculated in the units of Average True Range.
Although, it is likely to gauge either in monetary terms or in points from the value of the currency pair in focus.
The chandelier_exit Metatrader 5 forex indicator is a modified technical tool that gets drawn in the form of a painted cloud.
The cloud changes between lime and violet, where the lime cloud depicts bullish market signal, while the violet cloud represents a bearish market condition.
The EUR/JPY Daily chart below displays the Chandelier Exit Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when the lime cloud of the chandelier_exit Metatrader 5 custom forex indicator paints the activity chart.
Sell Signal: Go short when the violet cloud of the chandelier_exit Metatrader 5 custom forex indicator gets displayed on the activity chart.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the chandelier_exit MT5 fx indicator pops up a violet cloud on the price chart.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the chandelier_exit MT5 fx indicator pops up a lime cloud on the activity chart.
Tips: The chandelier_exit MT5 forex indicator is quite suitable for medium and long term forex traders.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (RangePeriod, Shift, ATRPeriod, MultipleATR), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: stops | trend
Copy and paste the chandelier_exit.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)