|Simple Trading Ideas||
The Chandelier Exit can be used to set your trailing stop-loss during an uptrend or during a downtrend. You can read more about the Chandelier Exit here. Normally during an uptrend the Chandelier Exit is placed 3 ATR (Average True Range) below the 22-period high and during a downtrend it is placed 3 ATR above the 22-period low. The Chandelier Exit changes with new highs or lows and changes in volatility (ATR). It can prevent the trader from an early exit of a long or short position. During an uptrend a break below the Chandelier Exit can signal weakness or the end of an uptrend. The daily chart below shows SPY, the S&P 500 ETF with the Chandelier Exit. Currently it closed below the Chandelier Exit.