The Chandelier Exit is an ATR-based MT4 trend indicator. It identifies the current trend condition and plots possible trend breakout levels simultaneously.
Unlike simple moving averages, this indicator only reacts when the price makes a significant movement, like breaking the recent market highs and lows. Eventually, it allows you to anticipate breakout trading opportunities with solid trend confirmations.
Chandelier Exit Indicator for MT4 Overview
The Chandelier Exit Indicator for MT4 applies a single trendline that moves in a step-MA style. The direction of trend signals directly depends on the price position compared to the trendline level.
For a better understanding of trend-reversal situations, the Chandelier Exit level switches its colors whenever the price changes its direction.
Chandelier Exit Indicator for MT4 Explanation
The Chandelier Exit Indicator applies a 14-period ATR (Average True Range) as its core tool. It identifies the productive reverses of the price, which you can convert into profitable trading opportunities.
Since the indicator’s slope work as a trendline, we’ll treat it as a price breakout level. It means we’ll anticipate buy/sell opportunities depending on the price breakout directions at the Chandelier Exit level.
For instance, the price breaks above the Chandelier Exit line, and the curve turns orange and indicates a potential beginning of an uptrend market. Also, after entering an order, wait until the price breaks the trendline in the opposite direction to your trade entry for deciding an exit.
Besides determining price breakout points and trend signals, the Chandelier Exit level also identifies trailing stop levels of active orders.
Chandelier Exit Indicator for MT4: Buy Conditions
- The price breaks above the Chandelier Exit level
- The indicator curve turns orange
- Exit long when the price breaks below the Chandelier Exit line
Check Out: How Profitable Is Moving Average in The Forex Market?
Chandelier Exit Indicator for MT4: Sell Conditions
- The price moves below the Chandelier Exit line
- The indicator curve turns blue
- Exit short after the price turns above the Chandelier Exit level
