defghca
150 posts
msg #28807
- Ignore defghca |
9/22/2003 10:54:22 AM
from the mastertrader himself; Chuck LeBeau
Example of Chandelier Exit:
Exit at the highest high since entry minus 3 ATRs on a stop.
Or exit at the highest close since entry minus 2.5 ATRs on a stop
http://traderclub.com/toolkit.htm#chandelier
|
TheRumpledOne
6,411 posts
msg #28823
- Ignore TheRumpledOne |
9/22/2003 9:03:20 PM
An example would be helpful...
Thanking You in Advance.
|
defghca
150 posts
msg #28843
- Ignore defghca |
9/24/2003 9:11:49 AM
You must be pulling my leg...
References
visit C.Lebeau's site at http://traderclub.com/toolkit.htm#chandelier
http://traderclub.com/discus/messages/107/477.html?FridayDecember319991048pm
chandelier exit : From Dr. Alexander Elder's Book "Come into my Trading Room"
Elder Gives Credit for this Stop Approach to Chuck LeBeau
For SF
Chandelier = Hi - coef * ATR
where
Chandelier = the Chandelier Exit
Hi = the highest point for a selected number of days.
coef = the coefficient, selected by the trader.
ATR = Average True Range for a selected number of days.
for a long position
you set the parameters to your trading style
|
mika
131 posts
msg #28844
- Ignore mika |
9/24/2003 10:14:12 AM
Going back 5 days, I'm seeing way more green than red. And many with 15-30% gains. Exit strategy?! bah
|
EWZuber
1,373 posts
msg #28860
- Ignore EWZuber |
9/25/2003 3:09:09 AM
I see alot of reference to time frames on these threads refering to how long one holds a position, or when to exit, etc.
I have found that using fixed time frames is an arbitrary number in relation to the dynamics of the market.
Hold for one week? It works better to hold until the stock gives a sell signal itself. There are several different scenarios that could trigger a sell.
For instance a stock that has run up to a moving average from below and is testing it as resistance. Stochastics are overbought at 95 and Williams %R is angled down. That is a good time to take some off the table, IMO.
I have often heard people say that they set stop sells a certain percentage below their entry point. Again this is arbitrary.
Say you set a 5% stop. But what you don't know is that strong technical support lies just 1% below your stop. Also your stock is oversold on the hourly chart. You stop out at a 5% loss just to have your stock bounce up off this support and move substantially higher as the stock goes into accumulation.
Entries, stops, time frames should all be governed by the technicals that the stock is giving you.
The market is a lesson in acceptance.
We often try to make it do what we want or even get upset when it doesn't. That is because we had our own mind set as to what the market should do. We read the market news or some PR from a company and form our own opinion. IMO, not a good idea. Successful trading can be done in a news vacuum.
In my opinion the news is mostly just noise.
If we just read the technical indicators ( and some fundamental analysis helps a lot ) they will tell us exactly what the markets or your stock is doing.
The key is to learn the language and TA is the language of the markets.
If you want the latest information then use short term charts like the 1 and 5 minute or what ever suits you. JMHO
|
lanninb
17 posts
msg #29012
- Ignore lanninb |
10/3/2003 4:53:30 PM
Alexander Elder discussed the chandelier exit pages 180-183
"Come into My Trading Room"
I requested and got this feature added.
Stockfetcher support has the details. Parameters are adjustable.
regards
|
mika
131 posts
msg #29015
- Ignore mika |
10/3/2003 6:43:58 PM
What do the figures in bracket (22,2.5) stand for?
|
xplorer
257 posts
msg #29028
- Ignore xplorer |
10/3/2003 11:17:26 PM
Mika ...
I believe the 22 is the time frame ...and the 2.5 used to calculate the "stop limit".... this calculated value is subtracted from the high of the day...to set the trailing stop limit... usually (2.5 x ATR) or (3 x ATR).... ATR being "Average Trading Range".
A good exit strategy ! It really takes the emotion out of this part of the trade.
Fare well !
|
mika
131 posts
msg #29031
- Ignore mika |
10/4/2003 11:42:24 AM
Ok. I played with this for almost two days. It's a lagging indicator. It lags by 3 days or more. Kinda useless for my style of trading. Off it goes from my chart indicators. Will keep the MA(4) in its place. :)
|
xplorer
257 posts
msg #29046
- Ignore xplorer |
10/4/2003 8:10:39 PM
It is a good exit strategy.... I am not sure how it would help to select stocks ....
|