The Chandelier Stop can be used as a trailing stop. The values of this indicator depend on the market volatility. The two lines: Long CS and Short CS take turns to be displayed in the chart, depending on the trend.
Long CS lies below the candles. If the value happens to cross the candle cutting the specified number of pips from below (Number of points to switch), Long CS stops to be plotted and disappears starting from the following candle, and Short CS starts to be plotted from the current candle.
Short CS lies above the candles. If the value happens to cross the candle cutting the specified number of pips from above (Number of points to switch), Short CS stops to be plotted and disappears starting from the following candle, and Long CS starts to be plotted from the current candle.
If the Wait for close setting is enabled, the indicator will flip only after crossing the candle’s body. The conditions for flipping will be checked only when the candle closes. If the setting is disabled, the highs and lows are also taken into account - the conditions for flipping will be checked at every tick.
Methods of use:
| 1. | The Chandelier Stop is claimed to be one of the best stop trade indicators providing the maximum possible profit. It automatically adjusts to the market volatility. If the volatility is high, the stop will be a reasonable distance away from the current price. If the volatility is low, the stop will be relatively closer to the current price. |
| 2. | When the price falls below the Chandelier Stop, it is a signal to close the buy positions. |
| 3. | When the price rises above the Chandelier Stop, it is a signal to close the sell positions. |
