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I feel that Chandelier exits can be a useful reliable strategy when the market has its normal ups and downs over time. However, when we experience major selloffs as we have had recently, are the Chandelier exits really a valid, wise exit strategy ?
You might want to consider whether your chart timeframe matches your trade time frame. If you are mid to longer term minded, you would probably place your stop indicator on a weekly chart, not a daily chart, or else use much wider parameters on your daily chart than the default values.
One thing I've noticed with default parameters on some stop indicators is, the exits are in fact ideal entries if the stock is trending well. If you are in for the longer term, you probably don't want to consider getting out until the stock makes a lower high from a lower low.
Keep in mind, the long term approach is not designed to make the last dollar. By the time it's evident the trend has changed and it's time to get out, you will get a price that you could have exited on several weeks or months ago and gone on to another opportunity, and you've given up maybe 10 or even 20 per cent off the best price. That's OK if you've been riding a long trend. But you have to choose well and early in the trend to make that sacrifice worthwhile.
The alternative is to trade shorter term. Keep your stop close at entry, assuming your timing is good, but then, don't move the stop up until price has made at least an average gain for one leg. Then, when you see weakness - slack volume, small range, small gains, long wicks and/or tails, or failure to make a new price on good volume, move your stop up tight - or - put your stop ABOVE the current price, so you catch the next move up, which, given recent weakness, is likely to be the last.
So 22,3.0 becomes 22,3.0,short
And a video (shows using them for target and stop identification)
I didn't know you could offset the Keltner Channels
This works in both the Chart Overlays and the Indicators Overlay area.
You can use the minus on a "ratio" in the Price Indicator to get a different view instead of the colon. Especially interesting of the two symbols use the same scale
For example, the Percent of stocks above their 200 day moving average. The scale runs from 0 to 100 on the symbols. Looking at the NDX and SPX on this example
Using a colon to separate the two (and using the histogram style) it looks like this:
Using the minus to separate the two it looks like this:
The periods of over and under performance become a little clearer between the two symbols.
I "remember" a lot of things watching Arthur Hill presentations.
Bollinger Bands. Default parameter is 20,2. You can add another comma and offset parameter. So 20,2,20 will offset the bands 20 periods into the future. 20,2,-20 will off set them 20 periods into the past.
Discovered this as part of a previously mentioned review/analysis/study I'm doing on converting PnF price targets to reflect on time charts.