Chandelier Exit with MACD Alignment

30 gru 2024

CE often gives late buy and sell singals. I managed to modify the CE source code and align it with the MACD. This way the buy/sell labels will appear closer to the signal line crossover. Still may need further adjustments but gives definitely better entry position signals. This is for personal use only and not intended for strategy if not backtested individually. I am not responsible for profit loss if used without being backtested.

16 godzin temu

Informacje o Wersji

Introduction
The Chandelier Exit with MACD Alignment is an all-in-one technical indicator designed to help traders identify potential entry and exit points in the market. It combines a well-known trailing stop mechanism (the Chandelier Exit) with the momentum signals of the MACD (Moving Average Convergence Divergence). Additionally, it has been enhanced to display small price movement follow-ups—a feature that draws horizontal lines if the price moves a specified distance beyond the initial signal candle’s closing price.

The main goal of this indicator is to give traders a more precise way to follow trends and, at the same time, highlight when the market confirms or negates those trends with minor subsequent price moves. While the Chandelier Exit provides levels for managing potential stop-loss placements, the MACD portion helps pinpoint shifts in momentum. The extra lines that appear after a $0.01 movement add a simple “confirmation layer” for traders who prefer to see if the price continues in the signaled direction.

Key Features
Chandelier Exit-Based Stop Levels

Uses the Average True Range (ATR) to adapt stop-loss lines above or below the latest price action.
Helps traders establish clear thresholds for when the market might be reversing or continuing its trend.
MACD Momentum Filter

Evaluates momentum by tracking when the MACD line crosses above (crossover) or below (crossunder) its signal line.
Helps confirm whether a potential entry aligns with bullish or bearish market momentum.
Price Movement Threshold Lines

Draws a small horizontal line (blue for bullish moves, yellow for bearish moves) if the price moves a set amount (e.g., $0.01) from the signal candle’s closing price.
Allows traders to see quick confirmations of follow-through and better judge whether a breakout or breakdown is underway.
Buy and Sell Signals

Plots “Buy” when bullish conditions are met (e.g., MACD crossover with an uptrend according to the ATR-based stops).
Plots “Sell” when bearish conditions occur (e.g., MACD crossunder with a downtrend according to the ATR-based stops).
How It Works
When a buy or sell signal prints, the indicator records the candle’s closing price. From that moment on, it checks whether the market continues moving away from that closing level by at least $0.01 (or whatever threshold you set). If it does, it places a small horizontal line at the exact level that was surpassed. For example:

If a Buy signal appears at 1.33, a blue line will be drawn at 1.34 if the market’s high reaches or exceeds that level.
If a Sell signal shows at 1.2567, a yellow line will appear at 1.2467 if the market’s low touches or goes below that point.
This way, traders get an immediate visual cue that the price has confirmed some additional momentum in the direction of the initial signal. Conversely, if that threshold is never touched, no horizontal line appears, suggesting that the move may have stalled.

Disclaimers
Not Financial Advice
This indicator is presented for educational and informational purposes only. It does not constitute financial or investment advice. Always consult a licensed financial advisor or do thorough research before making any trading decisions.

Market Risk and Volatility
Financial markets, whether cryptocurrency, forex, or equities, can be highly volatile. Past performance of any indicator does not guarantee future results. Even a well-designed indicator like this one can produce false signals, particularly during unpredictable market conditions.

User Responsibility
The user is fully responsible for any trades placed based on signals from this indicator. Use it as a tool among other forms of technical or fundamental analysis. Employing proper risk management (e.g., position sizing, stop-loss orders, and portfolio diversification) is essential to mitigate losses.

No Guarantee of Profit
While the indicator aims to show potential price shifts and trend continuations, no system is foolproof. Unexpected market events, data feed issues, and slippage can impact actual trading performance.

Conclusion
The Chandelier Exit with MACD Alignment, complemented by clear post-signal price movement lines, offers a cohesive blend of trend-following guidance, momentum confirmation, and quick visual cues for minor but potentially significant price moves. By integrating these components, traders can gain a well-rounded perspective on possible turning points or continuations. However, it is crucial to remember that no single indicator can ensure profitable trades. Always combine it with robust money management techniques, sensible position sizing, and additional market research to navigate the markets responsibly.