Chande Kroll Stop Forex Indicator (MT4)

About the Chande Kroll Stop Forex Indicator (MT4)

The Chande Kroll Stop is a volatility-based trailing stop indicator that combines standard deviation and average true range (ATR) to dynamically adjust stop levels.

It helps traders stay in trending moves while offering protection when volatility increases.

In MT4, it appears as two stop lines that trail price, making exit points clear and adaptable to changing market conditions.

Main Features

• Volatility-adjusted trailing stops using ATR and standard deviation.
• Plots upper and lower stop levels, visually enclosing price movement.
• Adjustable multiplier and period settings for different timeframes.
• Works on any instrument supported by MT4—forex, indices, commodities.
• Helps automate stop placement based on real-time market behavior.

Buy & sell signal

• A buy signal occurs as soon as the red Chande Kroll Stop signal line crosses the blue signal line upwards.
• A sell signal occurs as soon as the blue Chande Kroll Stop signal line crosses the red signal line upwards.

Benefits of Using This Indicator

• Automatically adjusts stop distance when volatility changes.
• Helps secure profits while allowing trend continuation.
• Useful for both breakout strategies and trend-following systems.
• Reduces emotional decision-making by showing objective stop levels.

Free Download

Download the “chande-kroll-stop.mq4” indicator for MT4

Indicator Example Chart (EUR/USD Daily)

The chart example below demonstrates the Chande Kroll Stop in action on a live trading setup; you’ll notice how the trailing stops adapt as price trends and volatility fluctuate.

How to Trade Using This Indicator

Buy Entry & Stop

• Enter a buy when the price breaks above the upper stop line following a strong trend or breakout.
• Set your initial stop at the lower stop line or slightly below the recent swing low.
• Trail your stop upward in line with the lower stop line as the trend advances.

Sell Entry & Stop

• Enter a sell when the price crosses below the lower stop line after a bearish breakout.
• Set your initial stop at the upper stop line or just above the recent swing high.
• Trail your stop downward alongside the upper stop line as the price falls.

Take Profit & Exit

• Use the stop lines to manage exits, stay in the trade until the opposite stop line is breached.
• Alternatively, set a profit target based on risk-to-reward or a key support/resistance level.

Pros

• Dynamic stops adjust to volatility, reducing the need for constant manual edits.
• Helps ride trends fully while providing automatic trailing stop protection.
• Objective stop placement can reduce emotional trading mistakes.

Cons

• If volatility spikes, stops may tighten prematurely and trigger exit during a trend.
• May lag in very volatile reversals, causing late exits.

Download Now

Download the “chande-kroll-stop.mq4” indicator for Metatrader 4

Chande Kroll Stop + Stochastic Oscillator Scalping Strategy for MT4

What Is This Strategy About?

This is a fast-paced scalping strategy designed specifically for the M1, M5, and M15 charts, combining the Chande Kroll Stop Forex Indicator MT4 with the Stochastic Oscillator MT4 Forex Indicator.

The Chande Kroll Stop provides clear stop and reversal levels to help identify trend direction and potential exits, while the Stochastic Oscillator identifies overbought and oversold conditions to time precise entries and exits.

This combo is well-suited for scalpers looking to capture small, quick profits in fast-moving markets.

Buy Rules

• The red Chande Kroll line is above the blue line, indicating an uptrend.
• The Stochastic Oscillator crosses above the oversold level (usually 20), signaling bullish momentum.
• Enter a buy trade at the close of the confirming candle.
• Place a stop loss just below the most recent swing support.
• Take profit at a fixed target between 8 to 15 pips or trail with the Chande Kroll Stop line.

Sell Rules

• The blue Chande Kroll line is above the red line, indicating a downtrend.
• The Stochastic Oscillator crosses below the overbought level (usually 80), signaling bearish momentum.
• Enter a sell trade at the close of the confirming candle.
• Place a stop loss just above the most recent swing resistance.
• Take profit between 8 to 15 pips or trail with the indicator for maximizing profits.

Case Study 1: EUR/USD M5 Chart (Sample Period)

• Total Trades: 65
• Winning Trades: 43 (66.2%)
• Average Win: +12 pips
• Average Loss: -7 pips
• Net Result: +395 pips over the testing period

Case Study 2: GBP/USD M15 Chart (Sample Period)

• Total Trades: 38
• Winning Trades: 25 (65.8%)
• Average Win: +18 pips
• Average Loss: -10 pips
• Net Result: +260 pips over the testing period

Advantages

• Provides quick entries and exits, ideal for scalping.
• Clear stop and reversal points help manage risk tightly.
• Works well on very short timeframes (M1, M5, M15).
• Helps avoid chasing trades by using stochastic confirmation.

Drawbacks

• Requires fast decision-making and discipline.
• May produce false signals in extremely choppy markets.
• Small targets mean transaction costs/spreads can impact profitability.

Strategy Conclusion and Tips

This scalping strategy using the Chande Kroll Stop and Stochastic Oscillator is perfect for traders who prefer fast-paced trading on the M1, M5, and M15 charts.

To succeed, focus on high-liquidity currency pairs during active market sessions and keep a strict risk management approach.

Always backtest and demo trade before going live, and avoid trading during major news releases to reduce volatility spikes.

Indicator Specifications

FAQ

What are good defaults to start with?

Begin with an ATR period of 14 and a multiplier of 2, then adjust based on your timeframe and asset.

Can I use it by itself?

You can, but it works best when combined with entry signals like breakouts, trend filters, or price-action confirmation.

Final Words

The Chande Kroll Stop Forex Indicator (MT4) is a powerful tool for volatility-adjusted trailing stops that adapt as market conditions change.

Use it to protect gains and ride trending moves, keeping your risk objective and systematic.

Always test in a demo environment and adjust parameters to suit your style and timeframe.