Chandelier Exit Forex Trading Strategy
The Chandelier Exit Forex Trading strategy is designed to keep traders in the trend until a specified reversal takes place.
Traders can use this strategy to maximize their market returns in a trade and also to make informed stop loss decisions.
The good thing about catching trends is that you stand the chance of profiting from most of the move.
Based on the pair or instrument, in most cases, the default indicator parameters will just be fine to extract good pips out of the market.
Feel free to experiment with the various indicator’s settings and parameters.
MetaTrader4 Indicators: chandelier-exit.ex4 (Inputs Variable Modified; Range=14, ATRPeriod=18, ATRMultipl=3.5), trsi-indicator.ex4 (Inputs Variable Modified; RSI_Period=24)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the orange line of the chandelier-exit Metatrader 4 forex indicator stay slightly below the candlesticks as shown on Fig. 1.0, price is said to be driven higher, therefore a buy signal is said to be imminent.
- If the gray line of the trsi-indicator break and hovers above the 50.00 horizontal level (see Fig. 1.0), the overall market sentiment is said to be bullish, as such a buy alert will suffice.
Stop Loss for Buy Entry: Place stop loss below the most recent swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the chandelier-exit custom indicator displays a magenta line that is placed somewhat above the price bars as depicted on Fig. 1.0 while a bullish trend is running, bulls power is said to be weaning, thus an exit or take profit will suffice.
- If the gray line of the trsi-indicator dip below the 50.00 level during a bullish trend (refer to Fig. 1.0), more bulls are said to be closing their orders, as such an exit or take profit will do.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If the magenta line of the chandelier-exit custom indicator stayssomewhat above the price bars as illustrated on Fig. 1.1, price is said to be dragged lower, therefore a sell signal is said to be in the cards.
- If the gray line of the trsi-indicator breaksand hovers below the 50.00 horizontal signal level as seen on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to go short on the selected forex pair.
Stop Loss for Sell Entry: Place stop loss above the most recent swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the chandelier-exit custom indicator displays an orange line that pops up below the candlesticks during a bearish trend, bears power is said to be halting, thus an exit or take profit is duly recommended.
- If the gray line of the trsi-indicator surges above the 50.00 level while a bearish signal is ongoing as exemplified on Fig. 1.1, more and more bears are said to be leaving the market, as such an exit or take profit stance is advised.
Sell Trade Example
About The Trading Indicators
The chandelier-exit indicator was created by Charles Le Beau and was originally featured in Alexander Elder’s books, the Chandelier Exit.
It is broadly used for setting stop-losses during a trend, however, the ChandelierExit can also be used as a trend tool.
The trsi-indicator is an oscillator that gauges overbought/oversold market conditions but can also reveal trend direction.