Chande Kroll Stop¶
Indicators · Trend
Chande Kroll Stop — ATR-based long/short trailing stops.
The Chande Kroll Stop draws two volatility-based trailing-stop lines — one below price for longs, one above for shorts — that follow the trend and tighten as it runs. Built by Tushar Chande and Stanley Kroll, it's a systematic way to place and trail stops based on ATR and recent extremes, rather than guessing a fixed distance. The lines double as a trend-direction read: which side price is on tells you the trend, and a close through a stop signals a flip.
How it works¶
Over the ATR / extreme period (p) (10) the block measures recent highs/lows and ATR, offsets them by the ATR multiplier (x) (1.0) to form preliminary stops, then takes the extreme of those over the Stop period (q) (9) to produce the final Long Stop (support, below price) and Short Stop (resistance, above price). When price closes above the short stop it fires Bull ↑; closing below the long stop fires Bear ↓. Both lines plot on the price pane and ratchet in the trend's favour without loosening.
When to use it¶
Use the Chande Kroll Stop as a trailing stop and trend filter — much like Supertrend or Parabolic SAR, but with a two-stage (extreme-of-ATR-stops) construction that some find smoother. Ride a trend with the relevant stop line as your exit, and take the cross signals as entries or trend-flip confirmations. The multiplier and periods tune how tightly it trails: wider settings give the trade more room and fewer flips, tighter ones lock profit sooner but stop out earlier. As always, it chops in ranges — filter the regime.
Example¶
A trailing-stop trend ride: wire bars into the Chande Kroll Stop, enter long on a Bull ↑ signal (gated by ADX / DMI to skip ranges) into a Buy Signal, and trail the exit with the Long Stop line via a Structural Stop-Loss. Backtest in the Tester.
Tips & gotchas¶
- Two-stage ATR stop — extremes of ATR-offset levels; a smoother cousin of Supertrend.
- The stop line is a ready trailing exit in the trend's direction.
- Multiplier/periods tune the trail — wider = more room/fewer flips; tighter = quicker.
- Chops in ranges — pair with a trend filter.
Related blocks¶
Inputs¶
| Socket | Type | What to wire in |
|---|---|---|
| Bars | bars |
Price bars |
Outputs¶
| Output | Type | Plots as | Description |
|---|---|---|---|
| Long Stop | series |
Line | Support stop (below price) |
| Short Stop | series |
Line | Resistance stop (above price) |
| Bull ↑ | signal |
Signal arrows | Close crosses above the short stop |
| Bear ↓ | signal |
Signal arrows | Close crosses below the long stop |
Parameters¶
| Parameter | Type | Default | What it does |
|---|---|---|---|
| ATR / extreme period (p) | number · 1–200 | 10 |
|
| ATR multiplier (x) | number · 0.1–10.0 | 1.0 |
|
| Stop period (q) | number · 1–200 | 9 |
|
| Long stop color | colour | #26a69a |
|
| Short stop color | colour | #ef5350 |
Reference auto-generated from the block catalog · category Indicators.