Introduction: The Cure for “Early Exit” Syndrome
The biggest enemy of a profitable trader is not the market—it is the Fear of Missing Out (FOMO) on profits.
- You see a profit, you get scared the market will turn, and you exit.
- Five minutes later, the market explodes another 100 pips in your direction, and you are left watching from the sidelines.
The Chandelier Exit Indicator is the ultimate cure for this. Instead of using a static, emotional stop loss, this tool uses market volatility to calculate the perfect “safe distance” for your exit.
It “hangs” from the highest highs of the market, creating a dynamic buffer that widens when the market is crazy (News Events) and tightens when the market is quiet. If you want to capture the full move on Gold or EURUSD, this is your essential tool.
How It Works: The Volatility Logic
Unlike standard Moving Averages that lag behind price, the Chandelier Exit is based on the ATR (Average True Range). It calculates the average volatility over a set period and multiplies it to build a “Volatility Ceiling” or “Floor.”
Visualizing the Signals:
As seen in the screenshot you will download, the indicator plots a reliable stepped line:
- 📈 The Uptrend (Orange Line):
- This line appears below the price candles.
- Logic: It acts as a dynamic Floor. As long as the price stays above this orange line, the bulls are in control. Hold your buy trade.
- 📉 The Downtrend (Purple Line):
- This line appears above the price candles.
- Logic: It acts as a dynamic Ceiling. When price touches or closes above this line, the bearish trend is likely over.
⚙️ Best Settings for 2026 (Institutional Data)
To help you compete with institutional algorithms, we have tested specific parameters for the current 2026 market conditions. Using the default settings on every pair is a mistake.
Use this Cheat Sheet to optimize the indicator for your specific asset:
| Asset Class | ATR Period | ATR Multiplier | Strategy Goal |
| Major Pairs (EURUSD) | 22 | 3.0 | Trend Swing Trading: Filters out minor noise for multi-day holds. |
| Gold (XAUUSD) | 14 | 3.5 | Volatility Filtering: Gold is wild; a higher multiplier prevents “whipsaw” stop outs. |
| Scalping (M5) | 10 | 2.5 | Quick Profit Taking: A tighter leash to bank profits fast before micro-reversals. |
Note: A higher Multiplier (e.g., 3.5) keeps the stop loss further away (Loose). A lower Multiplier (e.g., 2.5) keeps it closer to the price (Tight).
1ms Latency to Your Broker
100% Uptime Guarantee
Max Leverage
Small Accounts
Platforms
1:2000
Yes ✅ (Cent)
MT4, MT5
No Commission
Use code “forexcracked” for 20% off
Up to 90% profit splits
Early payout options are available.
Download a Collection of Indicators, Courses, and EA for FREE
How to Trade with the Chandelier Exit Indicator
This indicator provides a complete trading ecosystem by offering both Entry Signals and Reliable Exit Points.
Strategy 1: The Trailing Stop (Primary Use)
The main purpose of this tool is to protect profits and remove emotion.
- Entry: Enter a trade using your preferred strategy (e.g., Breakout or Support Bounce).
- The Rule: Immediately place your Stop Loss exactly on the Chandelier Line.
- Management:
- As price moves in your favor, the Chandelier line will “step” up (for buys) or down (for sells).
- Manual Trail: Every time the line steps, manually move your Stop Loss to the new level.
- The Result: You lock in profit automatically. You never exit until the market proves the trend is over by hitting your line.
Strategy 2: Trend Reversal Entry (Crossover)
You can use the Chandelier Exit to spot new trends early.
- Buy Signal: Wait for the price to close ABOVE the Purple line. The indicator will flip to the bottom (Orange), signaling a fresh Bullish Trend.
- Sell Signal: Wait for the price to close BELOW the Orange line. The indicator will flip to the top (Purple), signaling a fresh Bearish Trend.
- Confirmation: Ideally, combine this with a 200 EMA trend filter to avoid false signals in sideways markets.
Why Use the Chandelier Exit Indicator in 2026?
- Removes Emotions: It tells you exactly where to exit. No more guessing, “Should I close now?” The line makes the decision for you.
- Adapts to News: Because it calculates ATR in real-time, the stop loss automatically widens during high-impact news events (CPI, NFP), keeping you safe from volatility spikes.
- Versatile: While H1 and H4 are recommended for the most reliable signals, it works on Indices (US30), Crypto, and Forex alike.
How to Install (MT4/MT5)
- Download the
.zipfile from the link below. - Open MetaTrader.
- Go to File > Open Data Folder > MQL4 (or MQL5) > Indicators.
- Paste the file.
- Restart MT4 or Right-Click “Navigator” and hit Refresh.
- Drag the indicator onto your chart and apply the settings from the table above.
Final Verdict: Is it Worth It?
Score: 5/5 Stars ⭐⭐⭐⭐⭐
The Chandelier Exit Indicator (Version 2.4) is not just an indicator; it is a Risk Management System.
If you struggle with holding winning trades, this tool effectively “handcuffs” you to the trend until it is truly finished. It forces you to be a disciplined, profitable trader.
Mirror Download Chandelier Exit Indicator MT4/MT5
FAQ: Frequently Asked Questions
Can I use this for Entries?
You can, but it is risky. Using the “Crossover” (when the line flips from Purple to Orange) is a valid entry signal, but it often happens late. It is much safer to use Price Action for entries and Chandelier for exits.
Does it work on Crypto (Bitcoin)?
Yes. Because Crypto is very volatile, the Chandelier Exit indicator is arguably better for Crypto than Forex. It adapts to the massive Bitcoin swings that usually hit static Stop Losses.
What is the difference between this and Parabolic SAR?
They are similar. However, Parabolic SAR accelerates (gets faster) as the trend goes on, often forcing you out too early. Chandelier Exit indicator relies purely on Volatility (ATR), making it more “fair” to the market movement.
