An automated type -4 alert was issued for Harmonic Inc (HLIT) yesterday (8/10) at 1:00pm as shown by the charts below. The price at which the alert was issued was $6.78. In the 4 panel layout screen captured below this price is not visible, but if the bottom right panel is enlarged, it will appear on the title right next to the DTI/alert. 

From the chart, we can see that the alert was issued by the automated strategy because the dominant Black oscillator is turning down. 

However, looking at the fast oscillators, we see they have an upside. This upside is bound to transfer momentum to the Violet component of the Pink oscillator that is poised to turn up. 

So it would be prudent to wait for the fast oscillators to finish their upward move before making the entry.

Couple of hours after the alert was issued, the fast oscillators have finished their upward movement as shown below. 

At this time the price has risen to $6.87 making it a much better entry point for shorting. 

We can also be confident of the clear downward path of Black oscillator. 

Safety condition is met because the dominant Blue is still moving down and Daily Model is also turning downwards. 

So we can go ahead and take the trade at this price. (Notice that the last two digits of the alert number has been turned to '00' indicating that the automated entry was earlier and the trade is still open)

The exit alert was issued today (8/11) at 1pm at a price of $6.39. So with the delayed entry the profit was a cool 6.9%

As a bonus chart for today's blog, here's the end-of-day chart of NASDAQ Composite (COMP) as of yesterday (8/10). With the Black having exhausted its upward move and Pink clearly down, the drop today is no surprise.

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