Chandelier Exit
Volume Profile Analysis glossary · Volume Profile Technicals
Definition
A trailing stop methodology setting the stop at a multiple of ATR below the highest high (for longs) or above the lowest low (for shorts) since entry.
Chandelier Exit in plain English
A Chandelier Exit is a smart trailing stop — an exit price that follows your winning trade upward so it can lock in gains, but never moves backward. For a "long" (a bet that price rises), it hangs the stop a set distance below the highest peak reached since you got in, and that distance is based on ATR, a measure of how much the price normally wiggles. So in calm markets the stop sits close, and in wild markets it gives more room. It's like a chandelier hanging from the ceiling: as the ceiling (the high) rises, the light rises with it, always dangling a fixed gap beneath.
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