Chande Kroll Stop on IQ OptionThe Chande Kroll Stop indicator we are going to talk about in today's article was invented by two technical analysts, Tushar Chande and Stanley Kroll. It belongs to the group of trend-following indicators. Its function is to detect protective stops thanks to the calculation of the average true volatility range of the markets.

How do you set the Chande Kroll stop on IQ Option trading chart?

Prepare your chart which means deciding what financial instrument you are going to trade and at what time frame. Then, click on the Chart analysis icon in the bottom left corner of the trading interface. Go to the section Other under the Indicators tab. You will find the Chande Kroll Stop in the list that will unfold on the right side. The indicator will be added to your chart after clicking on its name.

steps to attach Chande Kroll Stop indicator on IQ Option
Three simple steps to attach the Chande Kroll Stop indicator on IQ Option

Remember that you can also start typing the name of the indicator you want to find in the search box in the top right corner of the Chart analysis window.

The indicator comes with the settings which you can change if needed. There is the ATR period, Stop period, Multiplier as well as colours and display settings.

Chande Kroll Stop - settings
Chande Kroll Stop – settings

The ATR period specifies the calculations time for the volatility of values and the initial stop level.

The Stop period is used to calculate the time of the last stop.

Multiplier defines how far away the stop will be from the prices. For instance, if you are using a multiplier of 2, it means that your stop loss will be placed at a distance 2 times greater than the average volatility of the value.

Using the Chande Kroll Stop indicator in trading on the IQ Option platform

Which is the best stop loss indicator?

Chande and Kroll's indicator is based on market volatility. It intends to catch the momentum of the asset and allow to place protective stops. It consists of two lines that run across the price chart. A green line is a long stop line and a red is a short stop line. You should close long trades when the price falls beneath the green line. Close short transactions when the price rises over the red line.

Chande Kroll Stop on 5-minute EURUSD chart
Chande Kroll Stop on the 5-minute EURUSD chart

The general idea is to keep the trade open as long as the price is moving in the proper direction. The Chande Kroll Stop automatically tells you how you should modify the placement of stops. They are flexible but you need to adjust your stop loss manually.

The trailing stop for short positions is the highest stop reached over time. It is following the price when it is moving downwards but it stops when the price goes up. You can see on the chart below that in such a case stop line moves horizontally.

The red line can act as a dynamic Stop Loss for short positions
The red line can act as a dynamic Stop Loss for short positions

The stop for long positions is the lowest reached during the period of time. The trailing stop follows the price when it moves in your direction. It remains the same when the price falls.

The green line can act as a dynamic Stop Loss for long positions
The green line can act as a dynamic Stop Loss for long positions

The Chande Kroll Stop indicator may also be used to predict the upcoming change in the trend. Observe the two lines of the indicator and when the red one crosses above the green, you can assume the uptrend begins to form. When the red line crosses below the green one, you can expect a downtrend soon.

Chande Kroll Stop with different parameters
Chande Kroll Stop with different parameters


The Chande Kroll Stop indicator calculates the volatility of the underlying asset. It consists of two lines. One indicates the stop level for long transactions and the other one for short trades.

The stop is the highest or the lowest reached by the value. It follows the price when the price is moving in your direction and remains unchanged in case the value falls.

The Chande Kroll Stop is a trend following indicator and you should use it to trade in the direction of the trend.

Go to your IQ Option demo account and add the Chande Kroll Stop indicator to the chart. Practice trading with it there before you will move to the live account.

If you wish to share your thoughts on the indicator I have described today, please do it in the comments section below. I would be truly glad to hear from you.

Wish you good luck!


IQ option products like CFDs and options are investments that can be risky. This means that if you invest in them, you could lose your money quickly. In fact, 83% of people who invest in CFDs with this provider "IQ Option" lose money. You should make sure you understand how CFDs work and if you can afford to risk losing your money. Remember, this article is not giving you any advice about investing. Any information about what happened in the past or what could happen in the future is just an opinion and not guaranteed to be true. Including examples given in the content displayed.
Be warned!

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at "

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