Chandelier Exit + EMA Filtered Signals

The Chandelier Exit + EMA Filtered Signals indicator provides a trend-following system that combines ATR-based trailing stops with triple EMA filtering to identify high-probability entries.

Usage

This tool is designed to help traders identify trend reversals while filtering out low-quality signals during choppy market conditions. A Buy signal is generated when the Chandelier Exit flips to a long state, provided the price is trading above the 13, 50, and 200 Exponential Moving Averages (EMAs). Conversely, a Sell signal occurs when the Chandelier Exit flips to a short state while the price is below all three EMAs.

The indicator is best utilized on trending assets such as indices, commodities, or major cryptocurrency pairs. Users can monitor the highlighted background states (green for bullish, red for bearish) to stay aligned with the current market bias and use the integrated labels for precise entry points.

Details

The script is based on the Chandelier Exit logic originally developed by Chuck LeBeau and popularized by Alexander Elder. It calculates trailing stops using the Average True Range (ATR) subtracted from the highest high (for longs) or added to the lowest low (for shorts) over a specific period.

This version introduces a strict trend filter using three EMAs (13, 50, and 200). By requiring price alignment across multiple timeframes/lengths, the script aims to reduce "whipsaw" signals that often occur with standalone volatility exits in sideways markets.

Settings

Calculation

• ATR Period: The lookback period used to calculate the Average True Range and the highest high/lowest low.
• ATR Multiplier: The coefficient applied to the ATR to determine the distance of the trailing stop from the price.
• Use Close Price for Extremums: When enabled, the script uses the closing price instead of high/low values to calculate the trailing stop levels.

Visuals

• Show Buy/Sell Labels: Toggles the visibility of the "Buy" and "Sell" labels on the chart.
• Highlight State: Enables or disables the background color filling between the price and the trailing stop.
• Show EMA 13/50/200: Toggles the visibility of the three filtering Exponential Moving Averages.

Alerts

• Await Bar Confirmation: When enabled, alerts will only trigger once the candle has closed, preventing repainting signals.

FAQ

How do I access Chandelier Exit + EMA Filtered Signals?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Which timeframes work best for this indicator?

While it can be used on any timeframe, it is most effective on the 15-minute, 1-hour, and 4-hour charts where trends are more established.

Can I change the EMA lengths?

The current version uses fixed 13, 50, and 200 periods to maintain a standardized trend-filtering logic, but the ATR parameters are fully customizable.