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Swinging from the Chandeliers

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Hello Fellow ChartWatchers!

I'm very happy to announce that we've just added a new overlay to our system - the Chandelier Exit.  This overlay is a favorite of our good friend Dr. Alexander Elder.  He discusses it extensively in his books.  It is a trailing stop overlay meaning that it tries to determine a good price level for exiting an existing position.  In that regard, it is similar to Welles Wilder's Parabolic SAR overlay.  Here's what it looks like in action:

Chand-03-etn-uptrend

Notice that the red line on this chart could have been used effectively as a trailing stop-loss during the uptrend.

For more details on Chandelier Exits including how they are calculated and used, please see our new ChartSchool article on them.

- Chip

Announcement from the Author

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Chip Anderson
About the author: is the founder and president of StockCharts.com. He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of StockCharts.com into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at StockCharts.com, and provides updates about new features or additions to the site. Learn More
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