Chandelier Exit Oscillator

The Chandelier Exit Oscillator is a powerful trading indicator designed to help traders identify trend momentum, reversals, and optimal exit points using a visually intuitive oscillator format. By blending the classic Chandelier Exit trailing stop strategy with an oscillator structure, this tool enables a clearer understanding of market behavior—whether you're aiming to ride a trend or time your exit effectively.

This indicator works by calculating trailing stop levels based on a multiple of the Average True Range (ATR). When prices move above or below these levels, the oscillator reflects the shift, giving traders valuable insights into potential breakouts or reversals. Unlike traditional chart overlays, this oscillator format helps distill key momentum data into a streamlined, actionable visualization.

How to Trade with the Chandelier Exit Oscillator

The Chandelier Exit Oscillator is built for both long and short position traders. By visualizing trailing stop levels as an oscillator, traders can easily spot when price action is trending strongly, weakening, or reversing. The oscillator’s behavior around the baseline and its shifts in direction can signal continuation or exhaustion of the current trend.

A standout feature is the ability to select a Timeframe for calculation, enabling traders to conduct multi-timeframe analysis. This makes it easy to align short-term decisions with broader market context—a critical edge in any trading strategy.

Traders can choose between two oscillator modes:

• Regular: Displays the raw Chandelier Exit oscillator values.
• Normalized: Applies smoothing and scales values from 0 to 100, offering a standardized format that enhances readability across different market conditions.

Visual Overlays for Better Clarity

To assist visual traders further, the Chandelier Exit Overlay can be toggled on to show actual stop levels on the price chart. This visual guidance helps pinpoint potential exit zones or trailing stop placements with ease, improving risk management during both bullish and bearish conditions.

Additionally, the Trend-Based Bar Color feature colors price bars according to the prevailing trend. This allows traders to instantly assess market sentiment and react with confidence—whether to stay in a trade, scale out, or reverse their position.

Indicator Settings Breakdown

Chandelier Exit Settings

• Timeframe: Defines the timeframe used for Chandelier Exit calculations, unlocking multi-timeframe trading strategies.
• ATR Length: Sets how many bars are used to calculate the Average True Range, directly impacting the trailing stop sensitivity.
• ATR Multiplier: Adjusts the distance of stop levels. Higher values widen the trailing stop (more conservative), while lower values tighten it (more reactive).

Chandelier Exit Oscillator

• Oscillator Type: Choose between Regular and Normalized oscillator types depending on your preference for raw or smoothed visuals.
• Oscillator Smoothing: Controls how much smoothing is applied, which can help reduce noise and highlight major trend changes.

Chandelier Exit Overlay

• Overlay Toggle: Shows or hides Chandelier Exit stop levels directly on the price chart.
• Trend-Based Bar Colors: Enables bar coloring by trend direction to enhance chart clarity.

Related Scripts

• Market-Structure-Oscillator

FAQ

What is the main benefit of the Chandelier Exit Oscillator compared to standard trailing stop indicators?
The oscillator format offers a clearer visualization of trend shifts and momentum changes, especially useful in ranging or choppy markets where overlays may be harder to interpret.

Can I use this indicator for intraday and swing trading strategies?
Yes, thanks to its multi-timeframe support and customizable ATR parameters, it's suitable for day trading, swing trading, and even long-term trend analysis.

What is the difference between Regular and Normalized oscillator types?
The Regular version shows raw values, ideal for advanced traders wanting precision, while the Normalized version scales values between 0–100 for easier interpretation across different assets and timeframes.

How do I access the Chandelier Exit Oscillator?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.