stelaraX - Chandelier Exit

stelaraX – Chandelier Exit

stelaraX – Chandelier Exit is a volatility-based trailing stop indicator designed to lock in profits while allowing trends to develop. By anchoring stop levels to recent highs or lows and adjusting them with ATR, it adapts dynamically to changing market volatility.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The Chandelier Exit calculates trailing stop levels using the highest high or lowest low over a defined lookback period and offsets them by a multiple of the Average True Range (ATR).

Key principles:

* ATR defines dynamic stop distance based on volatility
* long stops are placed below recent highs minus ATR multiple
* short stops are placed above recent lows plus ATR multiple
* an optional setting allows using close instead of high/low for calculation
* direction flips when price crosses the opposing stop level
* signals are generated on confirmed directional changes

This structure ensures stops tighten during low volatility and widen during high volatility phases.

Visualization

The script plots:

* a long exit line during bullish phases
* a short exit line during bearish phases
* distinct colors for bullish and bearish stop levels
* visual buy and sell markers on direction changes
* alert conditions for automated signal monitoring

This clean, rule-based visualization supports structured trade management.

Use case

This indicator is intended for:

* trailing stop-loss management in trending markets
* identifying trend reversals via stop flips
* locking in profits during sustained moves
* filtering entries based on volatility-adjusted structure
* supporting systematic trend-following strategies

It works particularly well in strong directional markets and integrates effectively with momentum filters and AI-assisted chart analysis.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.