Combining and Saving Your Own Layout with Pre-Alerts
Combination of Pre-Alerts
One can see from the combination of indicators shown on charts above and below that the pre-alerts are very accurate in showing behaviour prior to actual price movements. The chart above is CSL, which behaves very well with the Pre-Alert indicators, as does CSL, which is shown below.
To create a Chart Layout using Pre-Alerts
To create a layout with Bourse’s unique Pre-Alerts click on the Prealerts menu on the Chart Toolbar.
A drop-down menu will appear, click Add. Choose a pre-Alert from the menu. It is advisable to use a combination of Pre-Alert indicators. We suggest you choose an Accumulation Indicator, a Conductor Indicator, a Turning Point and Market Conductor.
The Pre-Alerts default settings are displayed below. You can change the settings to suit the market conditions once you become more familiar with the Market Analyser. E.g. the TP can be adjusted down for shorter-term charts, i.e. Intra-day, to 12-14. On a daily chart with only 4 or 5 months shown one should have the TP set at about 16. For 12 to 18 months shown one would have the TP set up at 34 days.
You can create your own Layout by overlaying different indicators and clicking Layout on the Chart Toolbar.
Here are a few examples of stock charts. The pre-alert indicators are excellent for identifying potential trading points. As one can see in the examples below, it is possible to scan for 5 of the pre-alerts, with the Accumulator and Distribution indicators being the most popular. These two indicators show potential trading points nearing, once the price has stabilised and started to turn.
In the chart below most recently, we can see that the Analyser picked up the Distribution indicators at a previous resistance level of around 725p. The price downturned and continued down to the previous support level of around 635p, when the Accumulator indicated the buying was back in after a fall. The Conductor shows the price now going up again and in 19 was back up at 720 again.
It is good practice to look back along a chart found to see the ‘behaviour’ previously. This can be quite handy when looking back for previous support or resistance levels. One can see that some stocks do have price cycles etc.
In May the Analyser picked up the buying coming back in (chart below). The price turned down and bounced along the support line in mid-May, early July and late August, each time it touched the support line it triggered the Accumulation and Conductor. It turned up in late August and rose until it hit the resistance line at 855.
Then in early October the Conductor indicated the beginning of another run which broke the previous resistance at 855 that run up to 910.
Below is a chart for Fortescue Metals Group. The Analyser picked up the Retracement indicators showed the buying coming back in 09 – 10 May, then accompanying with the Accumulators on 18-24 May, and the chart was then checked it indicated a support line.
Note the long ‘hammer’ candle before the positive jump days, which shows the buying had come back in during the day. In 20 days the price jumped 10% to 12%.
The above chart shows how one can identify a potential rise in a stock with the Pre-Alerts giving a good indication of how the current trading will pre-empt what may happen tomorrow. Also note the ‘hammer’ candle on the day before the first price jump. This shows that the bottom has been ‘hammered out’, or the price has even been manipulated down to take out any stops, before rising on its way to a new company valuation level, possibly due to a upbeat trading statement or other positive news.