Since trading is nothing but a game of beautiful probabilities, it is imperative that we alert ourselves when the probabilities turn in our favor. In this video, you are going to learn how to set up alerts on the thinkorswim platform we are going to be covering, how to set up alerts when a stock breaks into an upper direction, how to set alerts when a stock is oversold, and how to set up alerts at confirmation and in returns to this video. The only thing I ask of you is that you hit that ravishing like button. That is of course a great way to send me an alert that you think this video is ravishing as well.

And of course also subscribe for more short sweet and simplified videos on how to trade the stock market. Ok, so say we're looking at AMD Now one of the biggest factors that I like to look for is a stock that has recently broke into an upward direction. We like it when these stocks are trading above the long term SMA line because that means that we're in an upward direction. overall.

so AMD are a beautiful swing trade pattern that we've been talking about for quite a while. Andy just broke into a downward direction below our SMA line and it's also below our price rank that's in a line. So I don't want to stare at this position all day I Don't know if you want to, but I don't want to stare at this position all day. So what I recommend doing is setting a alert that alerts you when the stock breaks back into an upward direction if it breaks back up into an upward direction.

So in order to do that, you just go ahead and right-click on my computer it's just two fingers and then you go over to create alert. and usually when you're sending an alert, you're going to set it to a certain price point maybe previous resistance and then you type in a static number at which it alerts you. But for this, we're actually going to be doing a study. So you click on the price and you go to study, then you go to edit.

then you go behind it. Now this is what the condition I said before, but we're not going to worry about that now just to make sure it's clear and you have no conditions. Then you're gonna go to add condition. So we want to set it so that it alerts us when the stock breaks above the SMA line or long-term SMA line.

cuz that's a confirmation of an upward direction. we're going to go to select condition. We're going to go to Price now. We want it to open above our long-term SMA line.

So we're going to look for open. Where it's open, your is open. double-click open. But then we want to go above.

So we need the price to be greater than the SMA line study cuz the SMA line is a study. Simple moving average plot SMA And now if you long term SMA line is set to 180, the short term is set to nine and you can see this the the stats at which we have them set or the specifications right here. Close one eighty, blah blah blah Close nine. so we just have to adjust this to make sure it is 180.

That way it will alert us when it crosses above the one eighty and not the nine one eighty and then we push save so it will alert us when this condition is met when the open. the open candlestick is greater than these simple moving average at one eighty. Wonderful! And then a little trick to make sure that you set it up right is go and make sure that the condition is set up and it'll show you the value of the alert based on the different specifications on the previous price action. So if you're looking at this, let's take a look.

We're looking at the 180-day chart. so we're gonna choose a aggregation period of four days because oh wait, not four it is. We're going to choose an aggregation period of four hours because we have the 180-day for our aggregation period and if we're looking at this chart, we can see down here that every single time if it was zero, that alert wouldn't have alerted you in that when it was one, it would have alerted you so we can go back and look at the actual price action and see where we would have been alerted and where we wouldn't have been and see if we had set this up correctly. This is just a way to make sure that you've set it up correctly because there's a lot of things that can go wrong if you don't put the right specifications.

So make sure that you're using this preview function to make sure that everything's set up properly. So if you're looking at this, you could see that where was it Not so right. Here was the break below the upward direction. So where was it not greater than the upward direction? Every point.

Where it was at zero. Right, Right? So all this point, all this point, we were in upward direction. So the alert value was one that meant that the condition was met. So let's just go ahead and look back at the price action to see all the different times where the condition would not have been met, just to make sure that we're back testing this correctly.

So over here right after 1221 and then ride between 12:15 and 3:15 Let's just go look and make sure that everything is as it should be. And when we go back to the preview window, we could see that during these time periods where it was in a downward direction, we have the alert value set to zero. So we know that this has been set correctly and we know that this is going to alert us when the study is true. When again, the open is greater than the opening candlestick is greater than the simple moving average at a length of 180.

And that would mean it's in an upward direction. and that would mean that when it alerts us, we know that it is in a upward direction. it's going up, and that would be a beautiful elevating factor. And then we can go ahead and push, create.

And now when it breaks above the SMA line, it will alert us. Okay, so let's say we're looking at another stock. Say hy whoops, Hy Hy is it's gapping up a little bit. Let's say that we want to be alerted when we are it below fair value or oversold because it looks like we're trading a little bit high.

You could say this is a momentum position. Let's look at it intraday. Yes, so we're trading a little bit high, right? We're below fair value intraday long term. We know that we're overbought, but do.

Let's just say that we're looking to take a position in this intraday. we've have to 12% run-up Let's say we think it's gonna continue to run up and we're right below the directional strength and we have a little bit of a confirmation over the SMA line. But let's say we want to get in when it's oversold because we want to make sure that we are increasing the amount of upward potential and minimizing the cost as much as possible. So let's say we want to be alerted when we're below oversold when we were, when we're over sold and we have a good deal.

Getting a good deal is a huge elevating factor that pushes the odds of success more in our favor. So to do that, you go over to create alert like I just did and then you go down to this study. Edit: We're gonna get rid of the old study that we just put and we're going to add a condition. So this is the RSI.

So we're looking for the study to be the RSI. Not that RWS I do not click or WSI Ok, RSI is going to be so we want it to be buh-buh-buh-buh lower than 30, right? So this is the oversold line. This is overbought. This is oversold.

30 is considered oversold as per my definition and as per the default definition on thinkorswim. So we're going to be setting it to lower less than oversold, right? Yes, So less than oversold RSI And we're going to plot oversold so it will alert us when the RSI is less than oversold as plotted by the RSI and we're going to push Save And now we're gonna check it. What Is this The one day? So we want an aggregation period of one minute and let's see if this is true. So let's look.

When was it oversold intraday Right here. Right Here. Was it oversold? Did it alert you when it was over salt? Would it have allergy when it was oversold based on the specifications that we just set? Yes, Yes, it would. Zero.

zero. The value of the Lord is zero. That means it's not alerting you. And then it was one that meant that it would have alerted you.

That means that our setup is correct and we have set this up correctly. And then we could go ahead and create And now it will alert us next time it's oversold so we can go off and do other things and then it will alert us if our criteria is met. If the cry tears never met, then it won't alert us and it will reset. But hopefully the criteria is met and then we'll have a good play with that.

I Don't know that I would even like display because of the low volume. This isn't really a great play because of low volume, but let's say we were looking for a catalyst play like we had this morning. Then you know maybe that would be something that we're looking for. Okay, let's say we're looking at Amazon Let's say we want to buy it when we have an upward direction.

Okay, so we already know how to do that. Go ahead, you create alert, go ahead and go to study. Edit: We have the harness license. We just did that but we want to set so then we have an upward direction.

So let's go ahead. and what was it that we set? When we have an upward direction, we have Price Woops Price set to open because we wanted to open above the upward direction s It may allow me long Term SMA Line: It indicates that we're in an upward direction when trades above it and below it indicates are in a downward direction. We're currently in a downward direction so we want to be updated when we're in an upward direction which will be that break above the SMA line. So open we want to be notified when it's greater than right Creator then simple moving average as indicated by the long term which is 180.

Save: let's make sure that this is correct. We're looking for the one minute. Would it have alerted us when we were above for this time span? Well, let's see number One right. At this point it says we were above the long term SMA Line: Is that true? Yes, you're above it.

but at this point we're we below it. Yes, we were below it. So we know that that has been said correctly. But let's say that we would like to set it for a different time span.

Let's say we want to set it for the 20-day You want to be alerted when it's above the 20-day long term SMA Line Okay so we go to Create Alert you go to study. This is the RSI value. Price: Open Greater than Study Simple moving average plotted by the 180-day save. Now you want to be alerted when it's on the aggregation period of one hour.

Now, at this point, was it trading above the long term SMA Line: Yes, What about at this point? Yes. So we've done that correctly. Okay, but what about confirmation? I Always say wait for confirmation because of the simple fact that you want to buy in. When the price action is confirming your hypothesis for the stock, you want the momentum going in your favor.

So how exactly is it that you can wait for confirmation without staring at the chart? Well set an alert to alert you when it has a confirmation. So to do that, all you have to do is go over to create alert. Go To study. Edit: Delete Okay, so let's go to condition.

We're going to go to price. We wanted to open above the blue SMA Leiden When it opens above the blue SMA Line: that is a confirmation point. When it opens above the red, that's a change of direction. So let's go ahead and greater then the value of the blue SMA line.

Any blue on some a line is said tonigh and the other one is set to 180. So this is good. Nine. Okay, and we want the period to be set.

Since we're looking for confirmation on this chart, we'll set the period to one hour. The aggregation period is going to be set. to one hour. Okay, save this is the condition.

Let's go to the condition setup and see if this is true. Alright, so at this last point here, oops, this is the wrong one. One hour. Okay, so at this last point here, was this a confirmation point? No.

Was this a confirmation point? No. But it was above the it did open above the SMA line. But what we care about is the first candlestick holding above the SMA line. And if we set this alert while we are below the SMA line, then it will alert us.

The first alert will be when it opens above it. Then we can cancel the alert. So at this point right here, we would have been alerted when this opened above the SMA line. See this one.

it was above the estimate line, but it didn't open above it. This one. it opened above the SMA line. so we would have been alerted with the value of one.

One means that it is alerting us. Zero means that it is not alerting us. and that, ladies and gentlemen is how you set up an alert for confirmations for overselling and for directional strength. If you have any questions whatsoever, feel free to reach out to us below or join our free Zip Trader Circle Facebook group.

We also have a discord chat, a trading tutorials, playlist, and a bunch of other resources if you look around the Zip Trader Hemisphere I Also, of course post loudly watch lists in the Zip Trader circle Facebook group So if you are having a hard time finding stocks, make sure to check that out. It is a completely free Facebook group Anyways, folks have a great day and I'll see you in the next video.