The Chandelier Exit is a technical evaluation indicator that helps merchants establish potential reversal factors available in the market. It’s primarily based on the concept that markets have a tendency to maneuver in developments, and that these developments could be recognized by wanting 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 will likely be under the value, and when the value motion is trending down, the Chandelier Exit indicator will likely be above the value.
The Chandelier Exit indicator can be utilized to establish potential buying and selling alternatives by searching 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 might be an indication that the development 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 might be an indication that the development is strengthening and {that a} continuation of the development is probably going.
