This is a new implementation of the chandelier stop developed by Charles LeBeau. For a long trade the chandelier stop is calculated by subtracting a multiple of the average true range over the last N bars from the highest high (chandelier) since the inception of the trade. For a short trade the chandelier stop is calculated by adding a multiple of the average true range over the last N bars to the lowest low since the inception of the trade.
Instead of calculating the stop from the highest high and the lowest low, it is also possible to calculate it from the highest close and the lowest close.
The indicator version presented here uses the average true range calculated one bar ago. This is to avoid that the stop moves away when approached by a bar, it further acts against the distortion of the average true range when the indicator is set to COBC = false and reduces CPU load. The concept of using the ATR one bar ago was already introduced with the SuperTrend M11.
UseHighLow: The chandelier stops can be calculated from highest high/lowest low or from highest close/lowest close:
Reverse Intra-bar = false: This is the default setting of the indicator. A logical signal will be generated when the close of the signal bar has taken out the stop line. The position may be reversed at the open of the next bar. The paint bars will only change colors for the bar after the signal bar. The arrow will be also plotted for the entry bar.
Reverse Intra-bar = true: This is an unusual setting for the Chandelier Stop The signal will be generated with the first tick that has plotted on the other side of the stop line. In this case the position may be reversed intra-bar for the signal bar. Paintbars and arrows will already plot for the signal bar.
Accessing the trend: The indicator comes with a BoolSeries that holds the trend. This BoolSeries can be accessed by other indicators or automated strategies.
Paintbars: The indicator has an option to display the current trend via paintbars. Downclose bars are filled, upclose bars are hollow. For the upclose bars an opacity can be selected for better visibility.
Arrows: The indicator has an option to display trend changes via an arrow.
Sound alerts: The indicator will alert to trend reversals and potential trend reversals. A potential trend reversal occurs when price touches the stop line intra-bar prior to the confirmation by a close on the other side of the stop line. The sound files are included with the indicator install file. Please unzip and copy them into the program files (x86)\ NinjaTrader 7\ sounds directory or whatever directory is used by NinjaTrader to store the sound files.
Category NinjaTrader 7 Indicators
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. So why not display the updated results on the open candle?