The Chandelier Exit is a technical evaluation indicator that helps merchants establish potential reversal factors out there. It’s based mostly on the concept that markets have a tendency to maneuver in tendencies, and that these tendencies might be recognized by trying on the highs and lows of the value motion. The Chandelier Exit indicator is plotted as a line on a value chart, and it strikes up and down with the value motion. When the value motion is trending up, the Chandelier Exit indicator shall be under the value, and when the value motion is trending down, the Chandelier Exit indicator shall be above the value.
The Chandelier Exit indicator can be utilized to establish potential buying and selling alternatives by on the lookout 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 could possibly 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 greater lows, this could possibly be an indication that the pattern is strengthening and {that a} continuation of the pattern is probably going.
