ALERTS:

Unless otherwise specified, if a stop price hits before the entry is triggered, the setup is nullified and a new entry price must be used if the setup is still of interest. Where the entry and stop prices are not yet discernible, for instance in a pattern that is under development and entry and stop are based upon breakout prices of the last 5 bars, etc., then only the type of setup will be given. Refer to the section in the site titled Chart Patterns for criteria on entering stocks based upon the pattern. NOTE: For a stock to setup, let it break by several cents and several lots. If it only breaks by 1-2 small lots it does not show any real conviction. The more volatile the stock and the more expensive the stock, the more it should break to show conviction. For more information, please click here.

The following are examples of what the alerts look like. For equities all alerts begin with "STOCK" in white text on a green background. EMini alerts look the same except the alert begins with "EMINI" in white on gray. All stock alerts are echoed into #stocks and all EMini alerts are echoed into #emini. Market Alerts are echoed into both.

Position Trade Alerts:
Position trades are setups based on weekly and monthly patterns and criteria. They are typically held for several months. All position trade alerts begin with the words POSITION TRADE in black text on an orange background. Partials are protected on position trades near strong daily or weekly support or resistance levels and then moved to no loss. Position trades generally use trailing stops with a break in the 20 day sma once partials are protected.

The Position Trade Buy Alert looks like the following:

 

The Position Trade Short Alert looks like the following:

 

Updates on Position Trades look like:

Swing Trade Alerts:
All swing trade alerts begin with the words SWING TRADE in black text on a light blue background. Unless otherwise specified, partials are protected when initial risk is covered (typically around 2%) and the stock is coming into strong support or resistance levels. The position is then moved to "no loss," meaning the stop is moved to approximately breakeven. Often more partials are protected once reward is twice initial risk, exiting into support or resistance levels. Then a trailing stop is initiated under the 15 minute 20 sma. There can be a great deal of variation in management of swingtrades, so if unsure, ask questions.

The Swing Trade Buy Alert looks like the following:

 

The Swing Trade Short Alert looks like the following:

 

Updates on Swing Trades look like:

Day Trade Alerts:
All day trade alerts begin with the words DAY TRADE in black text on a yellow background. Daytrades are generally exited into support or resistance levels using the strategies taught in the LTR.

The Day Trade Buy Alert looks like the following:

 

The Day Trade Short Alert looks like the following:

 

Updates on Day Trades look like:

Scalp Trade Alerts:
All scalp trade alerts begin with the words SCALP TRADE in black text on a pink background. Scalp trades are sold into momentum as they approach short term support or resistance levels. These should set up and move almost right away or in most cases you will want to look for a scratch and wait for a secondary setup.

The Scalp Trade Buy Alert looks like the following:

 

Updates on Scalp Trades look like:

Sample Alert:

In this alert Toni has indicated that there is a buying opportunity in Chubb Corp. (CB) if it can break the resistance that is present at $78.20. When the alert is presented the best thing for you to do is to look at the chart to see if you understand the setup. If you do not, please don't hesitate to ask us. Next, you should set an alarm to bring your attention to CB as it reaches a price level near $78.20. Once the resistance at $78.20 has been broken, you do not always want to immediately enter the trade. This is an aspect of support and resistance that often causes much heartache for traders who want things to be black and white. Unfortunately, in the market things are hot pink. Tape reading must also enter into the equation, so you want to look at things such as pace and volume on the break. As an example, let's assume that CB does break $78.20 and trades at $78.24, but this is only a single trade of 300 shares. Well, to my way of thinking someone committing slightly less than $24,000 in capital to a stock like CB is not a noteworthy event. In fact, it's very likely someone who is simply trying to bring amateurs into the game, and then will flip the stock quickly lower hitting their stops. You want to see good volume trade when important support or resistance points break, or you should consider it not meaningful enough to enter a position.

Other Alerts:

The Market Alert is used to point out market-related developments that may be of interest, such as support and resistance levels, reversal periods, etc. This alert is one all room members will find extremely useful. It is used only to point out major developments in the market that will affect market direction, pace, etc. It is an invaluable tool for both beginner and self-sufficient traders to use in finding and validating their own setups, entries, and exits as overall market indicator. For more information on using market alerts, please click here.

 

The Trading Tip Alert is used to point out important information useful to successful trading, such as how to use a certain indicator, definitions or words or phrases, etc.

 

The Notice Alert is used to notify traders of general information that can affect the market, such as upcoming economic reports, news alerts, earnings reports, data problems from the exchange, etc.