Chandelier Exit - MetaTrader 5 Script - MQL5 #19875 - MT4/MT5 Resources

The chandelier stop, developed by Charles Le Beau and featured in Alexander Elder's book, sets a trailing stop based on average true range (ATR). This indicator is designed to keep traders within the trend and prevent early exits if the trend continues. Typically, Chandelier exits will occur above price in a downtrend and below price in an uptrend.

The original chandelier stop-loss formula consists of three parts: the cycle high or cycle low, the average true range (ATR), and the multiplier. Using the default setting of 22 periods on the daily chart, the Chandelier Exit will look for the high or low of the past 22 days. Please note that there are 22 trading days in a month. This parameter (22) will also be used to calculate the average true range.

This version has been extended with additional (quick) stops - to add short-term entries and exits to major trend detection and estimation, and to allow the use of different periods for ATR calculations and highest high and lowest low periods (lookback periods).

Chandelier Exit is basically a volatility-based system that identifies large swings in price. Le Beau defines volatility using average true amplitude, which was developed by Welles Wilder, the creator of the RSI and the Average Directional Index. ATR uses the previous close, current high, and current low to determine the true range of movement for a given period. After some smoothing, the daily true range value evolves into the average true range over a given time period.

Attachment download

📎 chandelier_exit.mq5 (11.31 KB)

Source: MQL5 #19875