Alert Trigger Criteria
This guide provides a detailed description of the various alert trigger criteria available in the TakeProfit platform. Understanding these criteria will help you set up alerts that align with your trading strategies and preferences, allowing you to respond promptly to market changes.
Introduction
Alerts are an important tool for traders, allowing them to respond promptly to market changes. In TakeProfit, you can set up alerts with various trigger criteria tailored to your trading strategies. This guide will help you understand and effectively use these criteria, providing examples involving cryptocurrencies, stocks, and technical indicators.
List of availbale criteria:
Moving Up
The trigger activates when the price or indicator value increases by a specified amount.
Moving Down
The trigger activates when the price or indicator value decreases by a specified amount.
Moving Up %
The trigger activates when the price or indicator value increases by a specified percentage.
Moving Down %
The trigger activates when the price or indicator value decreases by a specified percentage.
Crossing
The trigger activates when two data series cross at any point.
Cross Up
The trigger activates when one data series crosses another from below.
Cross Down
The trigger activates when one data series crosses another from above.
Greater Than
The trigger activates when the price or indicator value exceeds a specified value.
Lower Than
The trigger activates when the price or indicator value falls below a specified value.
Entering Channel
The trigger activates when the price or indicator value enters a specified range.
Exiting Channel
The trigger activates when the price or indicator value exits a specified range.
Inside Channel
The trigger activates as long as the price or indicator value remains within a specified range.
Outside Channel
The trigger activates when the price or indicator value is outside a specified range.
Moving Up
Description:
The trigger activates when an asset’s price or indicator value increases by a specified amount within a certain number of bars.
Usage:
- Monitoring significant increases in price or indicator over a short period.
- Identifying the start of an upward trend.
- Tracking strong bullish momentum.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when the price of Apple (AAPL) increases by 5 over the last 3 hours. |
| Cryptocurrencies | Notify when Bitcoin (BTC) rises by 1,000 within the last 2 hours. |
| Indicators | Notify when the RSI value increases by 10 points over the last 5 bars, indicating strengthening momentum. |
Tips:
- Adjust the amount of change according to the asset’s volatility.
- Use to spot entry opportunities in a rising market.
- When monitoring indicators, pay attention to significant shifts that may signal a trend change.
Moving Down
Description:
The trigger activates when an asset’s price or indicator value decreases by a specified amount within a certain number of bars.
Usage:
- Monitoring sharp declines in price or indicator.
- Identifying the start of a downward trend or buying opportunities during a pullback.
- Monitoring weakening market momentum.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when the price of Tesla (TSLA) decreases by 10 over the last 4 hours. |
| Cryptocurrencies | Notify when Ethereum (ETH) drops by 200 within the last 6 hours. |
| Indicators | Notify when the MACD value decreases by 5 points over the last 3 bars, indicating weakening momentum. |
Tips:
- Helps in timely decision-making for exiting positions or entering at a better level.
- Combine with volume analysis to confirm the strength of the movement.
- When monitoring indicators, track declines that may precede price reversals.
Moving Up %
Description:
The trigger activates when an asset’s price or indicator value increases by a specified percentage over a defined period.
Usage:
- Monitoring significant percentage gains.
- Identifying assets or indicators with strong upward momentum.
- Tracking market dynamics.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when Netflix (NFLX) shares rise by 5% over the last 2 days. |
| Cryptocurrencies | Notify when Ripple (XRP) increases by 10% within the last 24 hours. |
| Indicators | Notify when the On-Balance Volume (OBV) increases by 8% over the last 10 bars, indicating strong buying pressure. |
Tips:
- Percentage changes are convenient for comparing assets with different price levels.
- Useful when screening the market for assets or indicators showing strong momentum.
- Apply to percentage-based indicators for consistent analysis.
Moving Down %
Description:
The trigger activates when an asset’s price or indicator value decreases by a specified percentage over a defined period.
Usage:
- Monitoring significant percentage declines.
- Identifying buying opportunities after a price correction.
- Monitoring weakening indicators that may precede a reversal.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when Amazon (AMZN) shares fall by 8% over the last 3 days. |
| Cryptocurrencies | Notify when Litecoin (LTC) decreases by 15% within the last 12 hours. |
| Indicators | Notify when the Stochastic Oscillator decreases by 20% over the last 5 bars, indicating approaching oversold conditions. |
Tips:
- Helps identify oversold assets or weakening indicators.
- Combine with technical analysis for signal confirmation.
- Monitoring indicator declines can help anticipate potential reversals.
Crossing
Description:
The trigger activates when two data series cross at any point.
Usage:
- Identifying potential trend reversals.
- Monitoring crossovers between moving averages or indicators.
- Detecting significant market signals.
Examples:
| Asset | Condition |
|---|---|
| Indicators | Notify when the 50-day SMA crosses the 200-day SMA on Google (GOOGL) chart (Golden Cross or Death Cross). |
| Cryptocurrencies | Notify when the MACD line crosses the signal line on Bitcoin (BTC) chart, signaling a potential change in momentum. |
| Stocks | Notify when the Price crosses the Ichimoku Cloud on NVIDIA (NVDA) chart, indicating a potential trend change. |
Tips:
- Crossovers of moving averages or indicators can signal significant market shifts.
- Use in combination with other technical tools to confirm signals.
- Be aware of false signals in volatile markets.
Cross Up
Description:
The trigger activates when one data series crosses another from below.
Usage:
- Signals a possible start of an upward trend.
- Identifying bullish signals.
- Monitoring increasing market momentum.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when the price of Microsoft (MSFT) crosses above the 100-day SMA from below, indicating a bullish trend. |
| Indicators | Notify when the RSI crosses above the 30 level on Ethereum (ETH) chart, indicating exit from the oversold zone. |
| Cryptocurrencies | Notify when the Chaikin Money Flow (CMF) crosses above zero on Cardano (ADA) chart, suggesting increasing buying pressure. |
Tips:
- Cross Up is often considered a buy signal.
- Confirm signals with volume and other indicators for increased reliability.
- Consider the context and overall market conditions.
Cross Down
Description:
The trigger activates when one data series crosses another from above.
Usage:
- Signals a possible start of a downward trend.
- Identifying bearish signals.
- Monitoring decreasing market momentum.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when the price of Facebook (FB) crosses below the 50-day SMA from above, indicating potential weakness. |
| Indicators | Notify when the RSI crosses below the 70 level on Litecoin (LTC) chart, indicating exit from the overbought zone. |
| Cryptocurrencies | Notify when the MACD line crosses below the signal line on Bitcoin Cash (BCH) chart, signaling a potential bearish reversal. |
Tips:
- Cross Down can serve as a signal to sell or close long positions.
- Use stop-loss orders to manage risks when trading on these signals.
- Consider the timeframe to filter out short-term noise.
Greater Than
Description:
The trigger activates when the price or indicator value exceeds a specified value or another data series.
Usage:
- Monitoring breakouts above key resistance levels.
- Identifying the start of bullish movement.
- Tracking extreme indicator values.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when Tesla (TSLA) exceeds 800, indicating a potential breakout. |
| Cryptocurrencies | Notify when Bitcoin (BTC) surpasses its all-time high, signaling strong bullish sentiment. |
| Indicators | Notify when the RSI on Apple (AAPL) exceeds 70, entering overbought territory. |
Tips:
- Useful for setting price targets and automating notifications when key levels are reached.
- Combine with volume analysis to confirm breakouts.
- For indicators, be cautious as overbought conditions may precede reversals.
Lower Than
Description:
The trigger activates when the price or indicator value falls below a specified value or another data series.
Usage:
- Monitoring breakdowns below support levels.
- Identifying the start of bearish movement.
- Tracking extreme low indicator values.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when Netflix (NFLX) drops below 500, possibly indicating further downside. |
| Cryptocurrencies | Notify when Ethereum (ETH) falls below 2,000, breaking a key support level. |
| Indicators | Notify when the RSI on Amazon (AMZN) drops below 30, entering oversold territory. |
Tips:
- Helps react promptly to price declines and make decisions about exiting positions.
- Can be used to set stop-loss levels or identify buying opportunities.
- For indicators, oversold conditions may suggest potential rebounds.
Entering Channel
Description:
The trigger activates when the price or indicator value enters a specified range between upper and lower boundaries.
Usage:
- Monitoring price consolidation within a certain range.
- Preparing for range-bound trading strategies.
- Tracking reduced volatility.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when Apple (AAPL) enters the price range between 130 and 135, indicating consolidation. |
| Cryptocurrencies | Notify when Bitcoin (BTC) enters the Bollinger Bands after being outside, suggesting reduced volatility. |
| Indicators | Notify when the ADX (Average Directional Index) on Tesla (TSLA) enters the range between 20 and 25, indicating a non-trending market. |
Tips:
- Use to monitor sideways markets and plan trades within the range.
- Combine with other indicators to assess potential breakouts.
- Be prepared for increased volatility when exiting the channel.
Exiting Channel
Description:
The trigger activates when the price or indicator value exits a specified range.
Usage:
- Identifying breakouts upwards or downwards.
- Signaling the start of a new trend or increased volatility.
- Monitoring significant market changes.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify when Tesla (TSLA) breaks out of the 700 - 750 price range. |
| Cryptocurrencies | Notify when Ethereum (ETH) moves outside the Keltner Channel, indicating a potential trend change. |
| Indicators | Notify when the Volatility Index (VIX) exits a low volatility range, signaling potential market turbulence. |
Tips:
- Breaking out of a channel may indicate the start of a significant movement.
- Confirm breakouts using volume and other technical indicators.
- Be cautious of false breakouts; consider waiting for confirmation.
Inside Channel
Description:
The trigger activates as long as the price or indicator value remains within a specified range.
Usage:
- Monitoring stable periods for trading within the range.
- Tracking assets or indicators during consolidation phases.
- Planning entry and exit strategies.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Continuously notify while Microsoft (MSFT) trades between 250 and 260. |
| Cryptocurrencies | Notify while Bitcoin (BTC) is within the 45,000 - 50,000 range. |
| Indicators | Notify when the Stochastic Oscillator on Ethereum (ETH) remains between 40 and 60, indicating neutrality. |
Tips:
- Useful for range-bound trading strategies.
- Be vigilant for signs of an impending breakout.
- Adjust range boundaries as market conditions change.
Outside Channel
Description:
The trigger activates when the price or indicator value is outside a specified range.
Usage:
- Monitoring extreme price levels or indicator readings.
- Identifying assets with increased volatility or trend strength.
- Tracking significant market events.
Examples:
| Asset | Condition |
|---|---|
| Stocks | Notify if Facebook (FB) trades above 350 or below 300, indicating significant movement. |
| Cryptocurrencies | Notify if Ripple (XRP) moves outside the Bollinger Bands, suggesting increased volatility. |
| Indicators | Notify when the RSI on Litecoin (LTC) is above 70 or below 30, indicating overbought or oversold conditions. |
Tips:
- Helps react promptly to significant market events.
- Combine with news analysis to understand underlying causes.
- For indicators, extreme values may precede reversals.
Best Practices
Clearly Define Alert Goals
Clearly Define Alert Goals
Understand exactly what you want to monitor and why. Set up alerts according to your trading strategy.
Use a Reasonable Number of Alerts
Use a Reasonable Number of Alerts
Avoid notification overload. Focus on the most important criteria for you.
Combine Alerts with Other Analysis Tools
Combine Alerts with Other Analysis Tools
Confirm signals using technical indicators and fundamental analysis.
Regularly Review Settings
Regularly Review Settings
Adjust criteria in line with changing market conditions. Analyze alert effectiveness and make necessary changes.
Use Appropriate Timeframes
Use Appropriate Timeframes
Choose time intervals that match your trading style (day trading, swing trading, long-term investing).
Ensure Timely Notifications
Ensure Timely Notifications
Set up alert delivery methods (mobile app, email, messengers) for quick response.
Test Your Alerts
Test Your Alerts
Start with small thresholds to ensure alerts are working correctly. Adjust parameters based on results.
Stay Informed
Stay Informed
Keep an eye on market news that may affect your alerts. Be aware of scheduled events like earnings reports or economic data releases.
Conclusion
Effectively using the various alert trigger criteria in the TakeProfit platform allows you to stay ahead in dynamic markets. By understanding and correctly applying these criteria, you can tailor alerts to your specific trading strategies, helping you make timely and informed decisions.
Remember, the key to successful alert management is continuous learning and adaptation. Regularly refine your alerts based on market changes and personal experience to optimize your trading outcomes.
Note: Always consider the individual characteristics of the assets and indicators you work with, as well as the current market environment when setting up alerts. This will enhance the relevance and effectiveness of your notifications.