The right trading alerts in Forex can be critical to ensuring a profitable bottom line.
Here are a few fundamentals to knowing what to look for when setting a trading or charting alert, led with basic questions:
• What: A useful alert will focus on a single instrument or currency pair you’re looking to trade.
• When: You might simply be on the lookout for a price increase or decrease in regard to a particular point. If so, look in your charting software’s alerts menu for an easy-to-understand command such as “more,” or “equals,” or “less.” Or, you might target price movement as it relates to another indicator. Those commands might include “Crossing,” perhaps with “Crossing up” or “Crossing Down.” Or for a rate of movement you might see commands such as “Move up %” or “Move down %” as well as simply “Move up” or “Move down.”
• How: Often, you will want to look at price movement in relation to another indicator. You will need to be sure to select that indicator from your alerts menu. Don’t assume the chart will insert it automatically. When simply looking for an increase or decrease around a certain point in your charts, be sure to select that value.
• Frequency: Is this a one-time alert or a repeating alert? One-time alerts are easy to set. Some software also makes a repeatable alert easy. But be sure to tell your software how often it should search for your alert conditions. This is sometimes called a “rearm” setting. You should also be able to set an expiration date for your alert, for when you think your conditions will become outdated.
• Trigger: Your trading software should allow an alert whenever a value is reached. But sometimes it’s useful to set your alert to notify you only when a candlestick has closed out at the point you’re looking for. Looking for candlesticks to close can provide confirmation beyond a wick simply touching that point briefly.
• Notification: Pick how your alert will reach you: in your computer browser, via an email, via a text message, or multiple platforms. Note: Your computer or VPS host needs to be running in order for your charting software to spot your alert.
• Alert comment: Customize the message your alert will send to you, so you will understand what is happening. Be descriptive with details such as currency pair, indicator, levels and more. Details are important because you can receive hundreds of alerts each month.
•Trading on alerts: Top software such as SmartTrader will also allow you to place trades automatically. We look at that in another blog post (click here).
The SmartTrader Pro charting platform will let you set hundreds of alerts each month for email, text messaging or your browser. Right now, you can try it for 30 days for just $27. Click here to see how the right software can simplify your charts so you can grow your portfolio. For a boost in automated functions (as well as speed and accuracy), begin your path with SmartTrader Pro.