Chandelier Exit with Zero Lag LSMA

Chandelier Exit with Zero Lag LSMA is a trend following strategy based ATR and  zero lag version of the LSMA (Least Squares Moving Average) that gives instant linear regression of current price action. How interpret Zero Lag LSMA : when the price moves above, it indicates a bullish trend. When the price moves below, it indicates a bearish trend. When the price remains near or on the line, it suggests sideways movement. The slope of the line indicates the trend direction

Strategy Setup

Time Frame 15 min or higher,

Currency pairs:any.

Chart: Heikin Ashi.

Indicators:

Chandelier Exit (atr 2, atr period 1).

Zero Lag LSMA 50 periods 15 min 30 min, 34 periods (H1, H2, H4, H4 Time Frame).

Trading Rules

How to Place a Buy Order

Trend Confirmation

Ensure the candlestick price is above the Zero Lag LSMA, indicating a bullish trend.

Buy Signal

Wait for a buy signal from the Chandelier Exit indicator.

Price Validation

Ensure the candlestick price closes above or remains above the Zero Lag LSMA after the buy signal.

Entry Point

Place a buy order after the Heikin Ashi candlestick has finished closing.

Stop Loss

Place the stop loss at the last swing low.

Take Profit

Use a target take profit with a risk-reward ratio of 1:1.4-1.5.

How to Place a Sell Order

Trend Confirmation

Ensure the candlestick price is below the Zero Lag LSMA, indicating a bearish trend.

Sell Signal

Wait for a sell signal from the Chandelier Exit indicator.

Price Validation

Ensure the candlestick price closes below or remains below the Zero Lag LSMA after the sell signal.

Entry Point

Place a sell order after the Heikin Ashi candlestick has finished closing.

Stop Loss

Place the stop loss at the last swing high.

Take Profit

Use a target take profit with a risk-reward ratio of 1:1.4-1.5.