ATR stop

Indicators

• Price
• High
• Low

ATR stop

Chandelier · 22 candles · factor 3

• Stop
• up
• down

This is how the node looks on the board: inputs on the left, outputs on the right.

Trailing stop at a distance of the ATR. Trails a stop behind the price at the distance of its usual swings (ATR): below it in an uptrend, above it in a downtrend. It only moves in the direction of the trend. When the price closes on its other side, the trend turns and the stop jumps across. The “up” and “down” signals are true as long as the trend points that way. Example: “ATR stop down” reports as soon as your trailing stop in an uptrend is hit and the trend turns.

What it looks like

• Price (close of each candle)
• stop in an uptrend
• stop in a downtrend
• trend turns down

BTC/USDT on 1-hour candles with the Chandelier stop: the highest high of the last 22 candles minus three times the ATR. In an uptrend it only moves up. When the price closes below the stop of the candle before, the trend turns and the stop jumps above the price. There, at the dots, “ATR stop down” becomes true. If the stop jumps briefly above the close with a new high, the trend only turns when the next close stays below it too.

Settings

The settings appear on the right under “Properties” once you click the node on the board. Below each field you find the same explanation as here.

Type

Default: Chandelier · from the high

What the stop keeps its distance from.

• Chandelier · from the high (default): The stop hangs from the highest high of the last candles, in a downtrend from the lowest low. 22 candles and factor 3 are usual.
• from the price: The stop follows the close at a distance of factor × ATR and reacts faster. 10 candles and factor 1 to 2 are usual.

ATR candles

Default: 22 · from 1 to 500, whole number

How many candles the usual range (ATR) is measured over, for the chandelier also the highest high and the lowest low.

Factor

Default: 3 · from 0.1 to 20

Distance of the stop as a multiple of the ATR. With 3 the trend only turns on a clear counter move; smaller values report earlier, but also more often wrongly.

Example

Notifies you as soon as the price breaks below the Chandelier stop and the trend turns.

How to connect the nodes:

1. Candle (Price) → ATR stop (Price)
2. Candle (High) → ATR stop (High)
3. Candle (Low) → ATR stop (Low)
4. ATR stop (down) → Push (Trigger)

On the board it reads: Chandelier · 22 candles · factor 3

Chain as JSON

To try it, copy it and paste it in the editor under “Import”. Importing creates a new chain.

atrstop.json

{
  "name": "Example: ATR stop",
  "version": 1,
  "nodes": [
    { "id": "c1", "type": "core.candle", "position": { "x": 40, "y": 40 }, "settings": { "pair": "BTC/USDT", "timeframe": "1h" } },
    { "id": "s1", "type": "core.atrstop", "position": { "x": 260, "y": 40 }, "settings": {} },
    { "id": "p1", "type": "core.push", "position": { "x": 480, "y": 40 }, "settings": {} }
  ],
  "edges": [
    { "from": "c1.close", "to": "s1.close" },
    { "from": "c1.high", "to": "s1.high" },
    { "from": "c1.low", "to": "s1.low" },
    { "from": "s1.down", "to": "p1.in" }
  ]
}

Inputs and outputs

Only matching types connect: number series to number series (round pin), signal to signal (square), message to message (diamond).

Direction	Pin	Type	Note
Input	Price	Number series	required
Input	High	Number series	required
Input	Low	Number series	required
Output	Stop	Number series	appears in messages as a price, e.g. “$81,616”
Output	up	Signal (true/false)	–
Output	down	Signal (true/false)	–

Good to know

• In messages the value is called “ATR stop 22 · 3”.
• Warm-up with the default settings: 320 candles (this many extra candles are loaded by the replay before the value is reliable).
• Search also finds it under: stop, stop loss, trailing stop, chandelier, atr, trailing, trend, exit.

Technical details

Chandelier: in an uptrend the highest high of the candles − factor × ATR, in a downtrend the lowest low + factor × ATR; a stop only moves while the previous close was on its side, and the trend turns when the close breaks the opposite stop of the candle before. From the price: close − factor × ATR in an uptrend, close + factor × ATR in a downtrend, only trailed in the direction of the trend; the trend turns when the close crosses the stop. ATR as the RMA of the true range, both start upward.

• Type in the chain: core.atrstop · Version 1.0.0 · Category key ind
• Settings in the chain: kind (Type), length (ATR candles), factor (Factor)
• Pins in the chain: Input close, high, low · Output line, up, down
• Reference tests in the manifest: 2 (with fixed price data: 500 candles of 1h)
• How a node is built