The Chandelier trailing stop is a volatility based stop. It takes the last few bars volatility ( High - Low ) and averages them and then multiplies them by a constant you choose (3 is the default). When volatility is HIGH it has a wider stop and as the momentum slows down and price slows down the stop automatically TIGHTENS. This works on all time frames and can also be used as a method for entering trades and as a trend identification tool
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