CandleStop Uses Recent Highs and Lows to Trail Stops

Summary

CandleStop is a channel-based indicator intended to trail stop levels in Expert Advisors. It sets upper and lower channel boundaries separately, with user-adjustable lookback periods for finding highs and lows. Traders can use those boundaries as trailing stop references, allowing the stop levels to respond to recent price extremes.

The document describes the indicator’s purpose and its two configurable lookback inputs, but it does not explain how the boundaries are calculated in detail, how often stops update, or how the method performs across instruments or market regimes. It gives no backtest or risk results, so the description supports understanding the basic concept rather than evaluating its effectiveness. The indicator was first implemented in MQL4 and published in 2007.

Key ideas

• CandleStop provides upper and lower channel boundaries as references for trailing stop levels.
• The lookback periods for locating highs and lows can be configured independently.
• The document gives no performance evidence or detailed rules for stop updates.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.