The Chandelier Exit is a technical evaluation indicator that helps merchants determine potential reversal factors out there. It’s primarily based on the concept markets have a tendency to maneuver in traits, and that these traits will be recognized by wanting on the highs and lows of the value motion. The Chandelier Exit indicator is plotted as a line on a worth chart, and it strikes up and down with the value motion. When the value motion is trending up, the Chandelier Exit indicator will likely be beneath the value, and when the value motion is trending down, the Chandelier Exit indicator will likely be above the value.
The Chandelier Exit indicator can be utilized to determine potential buying and selling alternatives by searching for divergences between the indicator and the value motion. For instance, if the value motion is making new highs, however the Chandelier Exit indicator is making decrease highs, this may very well be an indication that the pattern is weakening and {that a} reversal could also be imminent. Conversely, if the value motion is making new lows, however the Chandelier Exit indicator is making larger lows, this may very well be an indication that the pattern is strengthening and {that a} continuation of the pattern is probably going.
