A chandelier exit trails a stop below the highest price reached since a trade opened (for a long position), at a distance of some multiple of ATR, commonly 3x. As the trade makes new highs, the stop ratchets up with it; if price pulls back without making a new high, the stop stays put rather than tightening further.
The name comes from the stop "hanging" from the ceiling (the trade's peak) like a chandelier. It only ever moves toward price, never away from it, so a winning trade can never turn into a full round-trip loss once it's moved far enough in profit.
It's the exit style zengtrade's trend-following strategies use: no fixed take-profit target, because the whole point of a trend trade is to let a genuine trend run as far as it will. The chandelier exit is what closes it once the trend actually reverses, rather than the trader guessing a target in advance.
Educational content, not investment advice. zengtrade is paper-first and non-custodial.