Chandelier outletChandelier outlets are mainly used to set trailing stops during trends. Sometimes the trend may exceed our expectations, the chandelier exit can help traders grasp the trend longer. Although it is usually used to stop losses, the chandelier outlet can also be used as a trend tool. A signal above the chandelier exit (long) indicates strength, while a signal below the chandelier exit (long) indicates weakness. Once a new trend begins, charters can use the corresponding chandelier outlet to help define the trend.Chandelier outlet is substantially a wave based system fixed rate can be identified significant price changes. Le Beau pass through the use RSI and the average direction of the index creator Welles Wilder opened the average true range sent to define volatility. ATR using the previous closing plate price, high current and low current time period to determine whether a given " true real range " . After some smoothing, the daily True Range value will evolve into Average True Range within a given time .Pass through the outlet chandelier to how long the period following the three ATR value, the volatility index is provided three times the volatility. A downtrend sufficient to break this level requires reassessment of long positions. The opposite applies to short positions. The chandelier outlet of the shorts is set to have a low ATR value within three months , which provides a cushion based on volatility. Prepayments exceeding this level need to be reassessed for short positions. Chandelier rising trendThere are time charts experts see a strong upward trend, but do not know where to jump and when to exit. Chandelier exits can be used to define trends and set trailing stops. The following example shows Eaton ( ETN ) at 11 explosion early hair and began to expand upward trend. The chandelier export well defines this upward trend, because it follows the price trend to steadily rise. Trailing stop losses could have been used to control the risk of new long positions. In chandelier exports provide only the case of loss, the trader will need to find an indicator to trigger a buy signal in the trend. A sensitive momentum oscillator can be used to capture short-term oversold conditions. Indicator window display StochRSI , which is applied to RSI random shock swing indicators. Less than .20 decline reflects the ultra-short-term selling situation. The subsequent rebound above 0.20 indicates that the upward trend is still continuing. Chandeliers decline trendSome stocks than other stocks wave move higher, a larger buffer, which means that should increase the multiplier. Hewlett-Packard ( HPQ ) examples show that the stock in 2012 most of the year at a distinct downward trend in time. The normal chandelier exit (short price of 22,3.0 ) will trigger some stops before the downtrend continues. Please note that this downward trend, HPQ how many times shift move to the top of the gray dotted line. Chart experts should increase the ATR multiplier to cope with volatile stocks such as technology. In this example, the red line by using a chandelier 5 asis the multiplier to allow for greater volatility. HPQ has maintained this chandelier settings until 12 mid-month burst hair, which marks the beginning of an upward trend.