Price Consolidation alert after a Big Upward Candle

Discussion in 'Ask A Question' started by Customer Care, Apr 8, 2016.

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  1. Customer Care

    Customer Care John @ timetotrade

    How can I create an alert for when the price consolidates to the price level of the candle before a big Upward candle. The scenario is:
    • A small candle
    • A big upward candle
    • Price moves down in small candles to the price level of the small candle before the big Upward candle
     

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  2. Customer Care

    Customer Care John @ timetotrade

    This alert can be set up using a combination of Price Channels and the Big Upward Candle indicators:

    upload_2016-4-8_11-57-55.png



    In the following example the requirement is for the price to revert to the low price before the big upward candle within 5 candles. This can be increased or decreased by changing any references to '5' in the example that follows.


    To implement this alert, the first requirement is for the Big Upward candle to rise above 0:

    upload_2016-4-8_11-58-13.png



    The second requirement is for the Low Price to fall below the 5 period Lower Price Channel:

    upload_2016-4-8_11-58-54.png



    Place the alerts in a Strict Sequence, with the requirement that both alert triggers must be evaluated as true within 5 candles:

    upload_2016-4-8_12-0-30.png


    Enter a message to remind yourself why the alert was created, select the preferred alert notification methods Email and/or SMS, then set the 'reactivate the alert after' interval if the requirement is to get repeated alerts when the chart conditions are met. Activate or Pause the alerts and note that Email or SMS notifications will only be received from Activated alerts.


    The alerts can now be back tested to help with the development of a trading strategy:

    upload_2016-4-8_12-3-41.png


    The alerts can be used to backtest or execute a trading strategy. In this example the alerts will be set up to test a reversal sell trading strategy based on taking profit or stopping losses if the price increases or decreases by 100 points. Trades will only be executed if there is no open position when the chart conditions are met. To set up this trading strategy, click on the alerts and edit them as per the following example:

    upload_2016-4-8_12-7-13.png


    Pause the alert based trading strategy and back test it:

    upload_2016-4-8_12-8-25.png



    and analyse the results:

    upload_2016-4-8_12-9-11.png


    If the alert is activated, it can be used to simulate or execute trades.

    To learn more about back testing and grouping alert triggers:

    Related content:
     
    Last edited: Apr 8, 2016

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  3. Customer Care

    Customer Care John @ timetotrade

    A related help video:

     

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