This blog discusses how examining the charts in tandem with the automated alerts can help fine-tune our entries and exits and increase profits.
The story is best told in pictures :-)
The alerts are fully automated and should be primarily treated as a mechanism to draw our attention to charts bearing potential trades.
Consider the type 4 alert issued for Cantel Medical Corp (
CMN) at 2:00 pm on 8/16. We can see that the estimated profit is 2.6% from the alert digits (6th and 7th digit).
To learn more or refresh about the significance of the alert number please visit this previous blog entry. From the chart accompanying the alert shown below, we can see that there are several factors that indicate we wait a while before making this entry.
A much better entry point comes towards the end of the trading day as shown below
But if we wanted a clearer turn of the Black oscillator and don't want to risk staying in the market overnight, yet another entry point comes along the next day morning as shown below.
Notice that even in the chart above, the entry price of $14.45 is less that the $14.5 price at which the automated alert came in.
The market rallied on 8/17, so towards the end of the day a good exit opportunity can be seen in the chart below.
As mentioned in the chart above, the price stayed flat and then starts to drop as shown below. It would be prudent to exit without risking staying overnight as the very dominant Blue is showing signs of turning.
In the best case scenario of entry at $14.40 and exit at $14.80, the trade would have made a profit of 2.77%!
Follow Us on Twitter
