The engine behind TriggerPoint ALERTS! is continually searching for opportunities to enter positions that display a higher probability of breaking out (up or down). Traditional methods such as moving averages, MACD, RSI and candle patterns have serious limitations, especially when trading in an age of computer driven strategies. Moreover, as most have already realized, overbought and oversold signals that are derived from many of these indicators often provide false signals which end up being nothing more than entries in the dark.
Behind the Scenes
For any security, our algorithms first calculates price action and accumulating volume-at-price over time. Then, specific ranges and levels of important turning points are “locked-in” from our proprietary swing and momentum algorithm. These ranges are clearly illustrated on our charts as three colored horizontal lines (red, teal and green). Each range is then dynamically plotted by Triggerpoint Research and continually compares the most recent to the previous, and so on.
Professional traders agree that with any technically driven trading strategy, the data is perhaps the most important consideration. If the data is flawed, the strategy will be flawed. This is why TriggerPoint Research only uses data from Bloomberg and other well-respected vendors.
The fact is that “free” data from the web is fine for a simple chart review. However, with real money on the line, we are not willing to use anything other than the most trusted and reliable sources.
The Alert! Trigger
Once ranges are calculated, there are several conditions that will trigger an Alert! based on momentum, trend. Those in which there is a high conviction rating will be sent via email or SMS/text to subscriberswith a summary and an action plan. (From time to time we provide a sampling of ALERTS! on Twitter – follow @triggertrading)
Here is an example chart with the ranges and potential TriggerPoints.
Click HERE for a follow-up on the actual for Green Mountain Coffee (GMCR) ALERT! which broke down for a potential gain of 20% within 2-days.