Chandelier Exit

Start with the standard settings: 22-period ATR and 3× multiplier. This is balanced and widely used. After gaining experience, you can optimize for your instruments and trading style.

Yes. For shorts, use Chandelier Short Exit = Lowest Low + (ATR × Multiplier). It 'rises' from the lowest low. Exit when price closes ABOVE this level. It's the mirror image of the long version.

No exit. The exit only triggers on a CLOSE below (for longs) or above (for shorts) the Chandelier level. Intraday breaches that recover by close are not exit signals. This reduces whipsaws.

Yes, but use shorter ATR periods (5-10) and possibly lower multipliers on intraday charts. The concept works the same way. Just ensure sufficient intraday data for ATR calculation.

Chandelier adapts to market volatility through ATR. In volatile periods, it naturally gives more room. In calm periods, it tightens. Fixed percentage doesn't adapt - you might get stopped out in normal volatility or give back too much in calm markets.

Use your entry system for entry signals, then apply Chandelier Exit from that entry point. Size position using entry-to-Chandelier distance as initial risk. Let Chandelier trail as position moves profitably. Exit when Chandelier triggers.

Many traders do. In high volatility (high VFTSE), use lower multiplier (2-2.5×) for tighter stops. In low volatility, use higher multiplier (3.5-4×) for wider stops. This adapts to regime beyond just ATR adaptation.

This can happen in strong trends. Consider partial exits at fixed targets to lock in some profit. Or use a tighter secondary trailing method for portion of position. The wide Chandelier protects against normal pullbacks.

For swing trading with daily bars, check once per day after market close. That's when you determine if exit triggered (close beyond level). For intraday, check each bar close. More frequent checking adds stress without benefit.

Yes. Plot both Long and Short Chandelier Exits. Price above both = uptrend. Price below both = downtrend. Price between = range/unclear. The channel between long and short exits shows trend status.

Test a grid of parameters (ATR 10-30, multipliers 2-4.5). Look for 'robust zones' where neighboring parameters perform similarly. Walk-forward validate on out-of-sample data. Avoid selecting single 'best' parameter that stands alone.

Chandelier anchors to the extreme (highest high), which captures maximum trend. ATR trailing stops often anchor to recent close, which trails tighter. Parabolic SAR accelerates over time. Chandelier is often best for capturing full trends.

For each position, calculate: Position Value × (Entry - Chandelier Exit) / Entry. Sum across all positions. This is your total portfolio at risk. Keep this under 5-10% of portfolio. High correlation compounds this risk.

Use Chandelier level for put strike selection (it's the support/exit level). Exit options when stock hits Chandelier. Roll options before Chandelier is hit to avoid being caught. Use Chandelier distance for spread width guidance.

Use faster ATR (10-14) for entry signal generation (price crossing back above Chandelier). Use slower ATR (22) for exit management (trailing). This gives responsive entries with stable exits - combining the best of both period lengths.