There are three different types of dynamic price alerts:
- Break Through: Break through alerts fire when a complete candlestick breaks through a trend line or indicator, which means the open and close price are on opposing ends of the annotation.
- Touch: Touch alerts fire when the candlestick’s open or close price (or the wicks) touch the candlestick but do not break through it or bounce off it. This is often used to detect consolidations.
- Bounce: Bounce alerts fire when the candlestick touches the chart annotation, but then another candle stick pulls back away from it. Note: A bounce alert needs two complete candle sticks to fire.
Note: All alerts fire based on the timeframe that they were created on. If you create an alert on the 15 minute chart, it will not fire until a 15 minute candlestick has completely closed.
Other Variables to Consider
- Sensitivity: You can also set a price sensitivity to the alert as well. This will allow your alert to go off if 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 price comes within $1.00 of your trend line depending on your alert it will fire.
- Confirmation Candles: The confirmation candles setting tells the system what timeframe to watch for your desired behavior. It can be any timeframe equal or smaller than the one you are creating the alert on. This allows you to control how much noise/confirmation is integrated into your alerts.