Alert on price spike through a 100 period Simple Moving Average

Discussion in 'Ask A Question' started by Customer Questions, Dec 4, 2012.

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  1. Customer Questions

    Customer Questions John @ timetotrade

    Is it possible to set up an alert for when the price moves down/up through the 100 period simple moving average.... But then closes back above/below it?
     

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  2. Customer Care

    Customer Care John @ timetotrade

    Yes it is possible.

    The implementation of this alert will require the use of two alert triggers:

    1. Add an alert trigger for when the 'High' price rises above the 100 period Simple Moving Average (SMA)

    2. Add a second alert trigger for when the 'Close' price, closes below the 100 period SMA

    The two alert triggers should be grouped such that both alert triggers must be true at the end of the interval. In this example a 1 hour interval candle is being used and both alert trigger conditions must be met within 1 minute at the close of the hourly candle i.e. when the hourly candle closes the high price must have crossed the SMA and the close price must be below the SMA. The time allowed to lapse between the price rising above the SMA and closing below it can be adjusted; for example if it was acceptable for the price to rise above the SMA and then close below the SMA 5 hours later, the group time frame should be adjusted to 5 hours.

    The following screen shots illustrate how to create this alert.

    Step 1: Add the 100 period Moving Average to the chart using the Chart Settings. Select the chart interval and use the chart triggers to build the alert. In the following screen shot, the alert trigger for one line rising above another is clicked. The 'High' price and the 'Moving Average' alert trigger values are selected i.e. the High price has to rise above the Moving Average. Click on the 'Add Trigger' button after selecting the two alert trigger values:

    Price SMA spike 1.png


    Step 2: Clicking on the newly created alert trigger will show the alert trigger values:

    Price SMA spike 2.png


    Step 3: Add the second alert trigger by clicking the 'Add Trigger' button in the Alert Builder widget.

    This opens the Trigger Configuration pop-out.

    Step 4: Set the Trigger Configuration as in the following screen shot:

    (Note for this trigger rule, the requirement is that the price 'Is Below' the Moving Average, rather than 'Falls Below')


    Price SMA spike 5.png


    Step 5: The grouping of the alert should be changed to support the required alerting criteria. There are three options available:

    Group - the alert trigger conditions can be met in any order within any time frame or a user defined time frame. If a Group time frame is defined, then all alert trigger conditions must be met with the allocated time frame regardless of the order they are met. For example if there are two alert triggers that are grouped in a 1 minute time frame alert, if the first alert triggers at 14:10:05 (10 minutes and 5 seconds past 2 pm) and the second alert triggers at 14:11:04, an alert notification will be sent as the alert trigger conditions were met within 1 minute of each other.​

    Loose Sequence - the alert triggers must be triggered in the sequence they are listed, however intermediate alert trigger conditions can be triggered repeatedly. The alert trigger conditions must be met within any time frame or a user defined time frame. Assume there are three alert triggers (1, 2 and 3). An alert notification will be sent if the alert trigger conditions are met regardless of whether or not intermediate alert trigger conditions are repeatedly met. For example the following sequence will result in an alert notification being sent: 1, 2, 2, 2, 3​

    Strict Sequence - the alert triggers must be triggered in the sequence they are listed, however intermediate alert trigger conditions can not be triggered repeatedly. The alert trigger conditions must be met within any time frame or a user defined time frame. Assume there are three alert triggers as per the previous example. An alert notification will be sent if the alert trigger conditions are met in the following sequence: 1, 2, 3 i.e. the second alert trigger condition can not be repeated or it would invalidate the alert.​

    In this example a 'Group' alert will be used, as the requirement is for both alert trigger conditions to be true at the close of the interval as illustrated:

    Price SMA spike 6.png


    Step 6: The alert trigger conditions must be both true at the end of the interval, therefore the time frame for the alert Group is set to 1 minute.

    Price SMA spike 7.png


    Step 7: Lastly create a 'Message' to describe the alert, such as 'Closes below SMA after high spike' and then set the notification methods and alert reactivation criteria. In these screen shots the email notification address has been erased.

    If an alert notification is required each time the alert conditions are met, set the alert to reactivate after a period of time. In this example the alert will be reactivated after a 1 hour period i.e. after the alert conditions are met, the alert will be paused for 1 hour before reactivating.

    Price SMA spike 8.png
     

    Attached Files:


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  3. Customer Care

    Customer Care John @ timetotrade

     

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