Dynamic Alert Trigger Conditions

A dynamic alert is created on the trend lines or indicators and notifies you whenever the price breaks through, touches, or bounces off of a trend line or indicator. In this documentation, we will understand the following three different alert trigger conditions you can set while creating the dynamic price alerts:

  • Break Through Alert
  • Touch Alert
  • Bounce Alert

Let’s get started 🚀

Break Through Alert

If the sensitivity buffer zone is defined around the trendline or indicator, then the Break Through alert will trigger when price opens and closes or closes and opens on either side of the buffer area.

If the sensitivity buffer zone is not defined around the trendline or indicator, then the Break Through Alert will trigger when the price opens and closes or closes and opens on either side of the line.

Touch Alert

If the sensitivity buffer zone is defined around the trendline or indicator, then Touch Alert will trigger when the price touches or trades through the buffer area, but does not break through it.

If the sensitivity buffer zone is not defined around the trendline or indicator, then Alert will trigger when the price touches or trades through the line, but does not break through it.

The touch alert is often used for detecting consolidations.

Note*: It’s nearly impossible for a touch event to occur with perfect sensitivity since the price would have to close to the exact cent ($0.01).*

Bounce Alert

If the sensitivity buffer zone is defined around the trendline or indicator, then an Alert will trigger when the price touches the buffer area but does not break through on the next candle.

If the sensitivity buffer zone is not defined around the trendline or indicator, then an alert will trigger when the price touches the line but does not Break Through on the next candle.

Note*: A bounce alert needs two complete candlesticks to fire.*

Note: It’s nearly impossible for a bounce event to occur with sensitivity set to 0.

Trigger Alerts

All alerts trigger based on the timeframe that they were created. If you create an alert on the 15-minute chart, it will not fire until a 15-minute candlestick has completely closed.

Moreover, TrendSpider offers flexibility to the traders by allowing them to select multiple or all the trigger conditions in a single alert. You can use all three alerts (Break Through, Touch, or Bounce) at the same time or in any other combination you want.

Trigger Alerts

Other Variables

Sensitivity

You can adjust the Sensitivity to increase or decrease the buffer zone around the trendline or indicator at which you want to be alerted. This will allow your alert to trigger even if the price begins to approach the indicator or trendline you have chosen without necessarily explicitly touching it.

For example, you can set the price sensitivity to $1.00 and if the price comes within $1.00 of your trend line (depending on your alert), it will fire.

Confirmation Candles

Selecting the Confirmation Candles confirms which time frame you want to be alerted on while allowing you to control how many confirmations are integrated into your alerts. For example, selecting a confirmation on the 10-minute candle means whenever the 10-minute candle closes anywhere within the sensitivity area of the trendline or indicator, you will be alerted.

The traders should understand that the confirmation candle list is dynamic. Hence, If you will create an alert on a monthly indicator or trendline, then you will not have the same options that you would have otherwise if the alert was created on a daily indicator or trendline.

****Time frame Confirmation Candles Available
1 min to 4 min Creating alerts at this resolution is not supported yet
5 min to 4 Hours 5 min to 4 Hours
Session 10 min to 4 Hours, Session, and Daily
Daily 30 min to 4 Hours, Session, and Daily
Weekly 4 hours, Session, and Daily
Monthly 4 hours, Session, and Daily

Confirmation candles available for an alert on a monthly trendline:

Confirmation candles

Confirmation candles available for an alert on a daily trendline:

Confirmation candles

While changing the confirmation candles, you will observe the automatically generated help description under the Data & Schedule getting updated based on your selection. Making further optimizations like selecting extended hours further augments the description to convey how the alert will work for you.

automatically generated help description under the Data & Schedule

Note*: Confirmation candle is a form of Multi-Timeframe Analysis. For more information, please refer to this documentation on*Multi-Timeframe Analysis.

Other Conditions

While creating a dynamic alert, you can configure other conditions like: How long you want the alert to stay active, How many times you want the alert to go off, and much more. For more information, please refer to the documentation on How to Create Dynamic Price Alerts.

Jun 22, 2022

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