May 4, 2013

Intraday Alerts - Further Explanation

The recent action has caused a flurry of questions about why we would have two "Bull" alerts back-to-back, and not a sequence like "Bull" - "Bear" - "Bull". It's quite simple - take a look at the chart example below.


There are times when we experience "Chop" - where prices tend to narrowly oscillate in a small range. This is enough to prevent an outright "Bear" alert, so there's nothing to do until conditions change enough for a "Bull" alert to be triggered.

A simpler example of a "Bear" alert is in the chart below.

Here you can see a single alert that is issued - and we start to slide in a rather regular pattern of gradual decline.

This should help you wrap your head around what these alerts are about, and how to position your trading strategies around them.