Setting MACD exits using RTalerts
You have a great setup, double top and MACD divergence in a higher timeframe, you see the entry in the lower timeframe, the MACD divergence. You have a goal for where the price should be going and you've bought your put appropriately. Of course this may be one of many option positions you have going. Monitoring these positions manually for an exit is just not feasible for many traders. Here's where using AIQ TradingExpert Pro RTalerts comes in.
Here's an example of a setup from yesterday.
Macys [M] in the first chart, shows a double top forming on the daily chart with an MACD downside divergence. The Monthly and weekly charts do not show the price and MACD diverging.

In this context a short term trade using lower timeframes (60 min) might be considered. The 60 min chart from 5/13/2010 shows MACD turning down.

So say you bought the May 24 puts on 5/13/2010. You're about a week from expiration. What's a good exit? Having entered on the downturn in the 60 min MACD, we could consider exiting when the 60 min MACD flattens out or turns back up. You could monitor this visually, maybe looking at even lower timeframes and waiting for the MACD to begin the process of flattening out. Better yet is to setup an alert. If you use AIQ TradingExpert Pro, RTalerts is the place to do this.

From the AIQ Main Menu, launch Alerts. use Tickers, Add, from the menu in Rtalerts to add the underlying tickers. Set the timeframe button to 60 min. Now we need to add the alert. We are looking for the 60 min MACD line to flatten or turn up. To do this we go to File, Alert Properties, Edit alerts. In the Alert code screen, scroll down to an empty line at the bottom, and copy and paste in this alert
!MACD SELL MY PUTS
Sellmyputs if [MACD]>val([MACD],1) or [MACD]=val([MACD],1).
For call positions I'm looking for the opposite exit, MACD to flatten or turn down, copy and paste in this alert
!MACD SELL MY CALLS
Sellmycalls if [MACD]<val([MACD],1) or [MACD]=val([MACD],1).

Click OK. You are back in the Alert Properties screen. Scroll down and find the alert in the list. Right click on the alert and select Alert Enabled. You can also add a sound from the right click. Make sure there is a check mark in the Alerts Enabled box, and click OK.

The alert is now set.
Important Note: The alert will fire on any ticker in your list and is dependent and fires only on the timeframe you are viewing.




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