CE (Chandelier Exit)¶
What it shows: two stop lines: the long stop hangs a few ATRs (a measure of how much price usually moves) below the highest high, and the short stop sits a few ATRs above the lowest low. Its direction is bullish once the close is above both lines of the previous candle, bearish once below both.
How people use it: mainly as a trailing exit: a long trade is closed when price falls below the long stop. Direction flips are also used as entry signals.
Pairs well with: an entry signal from a trend indicator (moving-average cross, Supertrend), with the Chandelier Exit managing the exit.
Settings¶
| Setting | Default | What it does |
|---|---|---|
| High length | 22 | Candles for the highest high (long stop). Longer keeps the stop under an older high. |
| Low length | 22 | Candles for the lowest low (short stop). |
| ATR length | 22 | Candles for ATR, the volatility measure. |
| Multiplier | 3.0 | How many ATRs between the high / low and the stop. Larger gives a wider stop: fewer exits, but bigger give-backs. |
You set the defaults on the Indicators page. A condition can use its own settings, which override the defaults for that condition only.
Ready-made conditions¶
| For | Condition | Fires when |
|---|---|---|
| Buy | Chandelier Exit flips to bullish | the one candle the direction changes to bullish |
| Buy | Chandelier Exit is bullish | every candle the direction is bullish (+1) |
| Buy | Price crosses above Chandelier short stop (prior bar) | the one candle price moves from below the Short stop line of the previous candle to above it |
| Sell | Price crosses below Chandelier long stop (prior bar) | the one candle price moves from above the Long stop line of the previous candle to below it |
| Sell | Chandelier Exit flips to bearish | the one candle the direction changes to bearish |
| Sell | Chandelier Exit is bearish | every candle the direction is bearish (-1) |
"Above", "below", "is" and "rising" / "falling" stay true on every candle the state lasts, so they can fire many candles in a row. "Crosses" and "flips" fire once, on the candle it happens, so you get one signal per move.
Warnings you may see¶
- "CE(22,22,22,3) Direction only moves between -1 and 1, so 2 can never be reached.": a number you typed is outside the range this line can take, so the condition can never be true (or is always true). Check the number. You can still save it.
- "It can never be true: a cross happens on one candle, so it cannot happen on N candles in a row. Use 'within the last N candles' instead.": a "crosses" condition with a "… in a row" lookback of 2 or more. Switch the lookback to Within the last.
- "High length must be between 1 and 1000" / "High length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "Low length must be between 1 and 1000" / "Low length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "ATR length must be between 1 and 1000" / "ATR length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
- "Multiplier must be between 0.1 and 20": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
Where they show: on the Strategies page, open Create entry conditions / Edit entry conditions (or the exit ones). Each condition's messages appear right under it. The setting messages ("must be between", "whole number", "must be one of", "must be smaller than") start with the indicator's short name, for example "MACD: Fast must be between 1 and 1000", and keep the conditions from being saved until fixed. The other warnings never block saving and are repeated in the strategy's Entry or Exit section, starting with the condition's name.
Good to know¶
- It is worked out from each candle's high, low and close (not volume).
- The lines are not "ratcheted": they can move back (away from price) when ATR widens. The price conditions use the previous candle's stop, the level a resting stop order would have had.
- It needs some history before its value settles: the largest of 6 × ATR length + 1, High length, Low length, and at least 100 candles (133 at the defaults). Apathia loads that history for you.
- "Flips" fires once; "is bullish" stays true while the direction lasts.