The Chandelier Exit is a technical analysis indicator that helps traders identify potential reversal points in the market. It is based on the idea that markets tend to move in trends, and that these trends can be identified by looking at the highs and lows of the price action. The Chandelier Exit indicator is plotted as a line on a price chart, and it moves up and down with the price action. When the price action is trending up, the Chandelier Exit indicator will be below the price, and when the price action is trending down, the Chandelier Exit indicator will be above the price.
The Chandelier Exit indicator can be used to identify potential trading opportunities by looking for divergences between the indicator and the price action. For example, if the price action is making new highs, but the Chandelier Exit indicator is making lower highs, this could be a sign that the trend is weakening and that a reversal may be imminent. Conversely, if the price action is making new lows, but the Chandelier Exit indicator is making higher lows, this could be a sign that the trend is strengthening and that a continuation of the trend is likely.
