Place Stop Signals Forex Trading Indicator
The ChandelierStops_v1 indicator for MetaTrader4 is an enhanced version of the Chande & Kroll’s Stop indicator. The indicator is enhanced to follow trend as well as spot stop loss for a buy and sell position via the use of variation on directional movement.
The average true range of an asset’s volatility is derived from the ChandelierStops_v1 indicator. As such the stops are positioned under (and on) the high (low) on the n last bars.
The ChandelierStops_v1 indicator is deployed to keep market participants in a trend and check an early exit from positions in line with the trends validness. It is usual to find the Chandelier’s exit placed above price in a sell market and below price in a buy market.
The ChandelierStops_v1 indicator can be used enter trades in a number of ways:
Buy when price trades above the blue line of the ChandelierStops_v1 indicator.
Sell when price trades below the blue line of the ChandelierStops_v1 indicator.
The ChandelierStops_v1 indicator is often used to place trailing stop-loss when price is trending. We find cases in the market where trend extends further than we expect and the ChandelierStops_v1 can be used to help traders stay on the trend slightly longer.
Not minding that it is frequently used for stop losses, the ChandelierStops_v1 exit can also be deployed as a trend tool. It is a signal for strength (long) when we get a break above the ChandelierStops_v1 exit, while we get a signal for weakness when we break below the ChandelierStops_v1 exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Length, ATRperiod, Kv, Shift), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: pattern, trend