Is it possible to get alerts for chart pattern completions in TradingView?

Introduction

This article explains how TradingView users can set up alerts for chart pattern completions. It is based on an educational video and is designed to provide a clear, step-by-step overview. The aim is to help traders understand the process in a practical way. Please note: this content is strictly educational and should not be taken as financial advice.

Key Concepts

TradingView includes a range of tools and indicators that allow traders to monitor market movements. Among these is the ability to identify chart patterns automatically and receive alerts when they form.

The process can be summarised in the following steps:

1. Open the Indicators tab in TradingView and search for 'Chart Patterns'.

2. Add the indicator to your chart.

3. Select the 'Alert' option from the toolbar.

4. In the Alert Setup window, under 'Conditions', choose the Chart Patterns indicator you added.

5. Save your settings. You will now receive alerts whenever new chart patterns emerge.

TradingView provides flexibility in how alerts are delivered. Users can choose to receive them by email, SMS, or as a pop-up notification within the platform itself. This enables traders to stay informed without needing to constantly monitor their charts.

Risks and Costs

While chart pattern alerts can be a useful tool, it is important to consider their limitations and associated risks:

- Alerts are based on technical indicators, which may produce false signals. Not every identified pattern will lead to the expected market movement.

- Acting on alerts can lead to costs, such as spreads, commissions, or overnight financing charges, depending on your broker or trading provider.

- Markets can move quickly, and receiving an alert does not guarantee that you will be able to act on it in time.

It is also important to manage expectations: using alerts does not remove the risks of trading. Losses can exceed deposits.

Illustrative Example

Consider a trader who sets an alert for a potential breakout pattern on a stock priced at £100 per share. If the price rises to £110 and the trader acts on the alert, they could gain £10 per share. However, if the price falls to £90 after the alert, the trader could lose £10 per share. This simple example highlights both the opportunity and the risk.

Assumptions: This example ignores trading costs, taxes, and slippage. Results will vary depending on market conditions and individual actions.

Disclaimer: Past performance is not a reliable indicator of future results.

Summary

TradingView allows users to create alerts for chart pattern completions by combining indicators with the alert function. Alerts can be sent by email, SMS, or directly within the platform. While these tools can help traders stay informed, they do not remove the risks or costs involved in trading. It is essential to treat alerts as part of a wider approach to risk management and decision-making.