Channel breakout
(2.0 - 10.0, based on the channel)
This alert is reported when a stock trade above the resistance of his previous channel, the channel where he consolidated before.
It is reported whenever a consolidation pattern ends abruptly.
The alert is reported before the breakout is confirmed, to make sure you receive the message very quickly.
You probably will receive many false signals, but you will be alerted quickly and then are able to take a trade before others.
If you look at confirmed channel breakout, you have to choose the CHBOC alert.
Trade-Ideas draw support and resistance lines with a proprietary algorithms.
They said that as support and resistance are not an exact science, few prints can be on the wrong side of the line.
If a print cross the line, an alert is reported only if there is sufficient volume.
Everybody know that depending on the length and the range of the consolidation, a stock is likely to move up quickly if he break above his channel.
As we said before, trade-Ideas report channel breakout as soon as a this happen to a stock.
A filter specific for this alert is available and it will let you choose the best consolidation pattern, this filter is called quality.
A big value of quality filter let Trade-Ideas only alert you for breakout where the consolidation pattern is considered as very interesting and not due to random.
A small value, show you the most trades and every alerts will be reported.
My personal thought :
I think that this is one of the best alert provided by Trade-Ideas.
In addition with some other filters you surely will find a nice and profitable system.
This alert is best suited for day traders or longer term traders.
I i think you should use stop a few ticks below the last resistance, and let your profit run.
Using others tools or techniques to define a profit target will let this alert more and more profitable.
You can use tape reading, profit lock near pivots point, long term resistance...
Here you can see testing results for this alert, i am showing only 60min holding period. Go there
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Channel breakout
(2.0 - 10.0, based on the channel)