TECHNICAL STUDY ALERTS GUIDE

SUMMARY OF FEATURES

• Alerts on technical indicators for 11 studies.

• Moving Averages
• MACD
• RSI
• DMI
• Bollinger Bands
• Stochastics
• Fear/Greed
• Highs and Lows
• Parabolic Systems
• TD Sequential
• TD Combo
• All studies generate real-time alerts based on historical studies (1 Day Moving Average vs. 5
Minute Moving Average)

HOW TO…DISPLAY THE TECHNICAL STUDY ALERT POPUP

• To create a Technical Study alert, run ALRT and select the More Alerts button on the red
toolbar.

• A popup will appear with all available alert

types.

• Select 6) Technical Studies to display the

Technical Studies Alert popup
HOW TO…CREATE A TECHNICAL STUDY ALERT

• In Step 1,
enter a security
or ticker list.

• The security
or list can
contain any
security for
which you can
see intraday
data on
Bloomberg.

• In Step 2,
select a
Technical
Study.

• Selecting a
study displays
available alert
conditions in
Step 3.

• In Step 3, select on which condition you wish to receive alerts. Selecting a condition will
populate associated criteria in Step 4.

• Modify criteria in Step 4 if desired. The default criteria are from your TDEF settings.

• Add notes in the Notes field if you wish to receive a reminder in your alert delivery as to the
purpose of this alert / action upon receiving it.

• Finally, select 1<GO> to Update to save your alert.

UNDERSTANDING TECHNICAL STUDIES

• Each of the 11 technical indicators has alert choices specific to the indicator, allowing the
user to identify the most important trading signals for their list. The fact that ALRT allows the
client to use custom periods as well as run daily/weekly/monthly screens is a feature that
differentiates Bloomberg from other platforms.

• Moving averages are a classic trend-following device, used to identify when trends are
reversing.
• MAvg1 crosses MAvg2
 Commonly referred to as “golden cross” and “dead cross,” the shorter-term moving
average crossing the longer-term moving average suggests the trend has reversed.
Common combinations are 50- and 200-day, also 5/20 and 15/50
• MAvg1 crosses above/below MAvg2
This selection allows you to isolate bullish/bearish signals. The shorter-term crossing up
through the longer-term is Bullish, whereas the reverse is Bearish.
• Last Trade crosses above/below MAvg
Many investors look for when the price itself breaks through a moving average,
suggesting the security is entering a new price trend (Bullish if upwards, Bearish if
downwards)

• MACD is a trend-following approach based on moving averages.

• MACD crosses above/below Signal
This is the classic buy/sell signal. Most investors use 12, 26, and 9 for the three periods.
• MACD crosses above/below Threshold
The actual level of the MACD line can be key information for understanding the strength
of the trend. Here you can pinpoint when the MACD line reaches a certain threshold
and warrants further analysis.

• RSI is the most common momentum-based approach in the markets, and is used heavily by
fixed income clients.
• RSI moves from overbought to neutral
An overbought condition (traditionally RSI > 70) suggests the market is overextended,
and the price should come back down. Some people like to customize the threshold
based on whether the security is in an uptrend or downtrend, so the ability to enter a
custom threshold is key here.
• RSI moves from oversold to neutral
When a security is oversold, sellers have been too aggressive, and the market is poised
to reverse back to the upside.
• RSI and Last Trade
This combines an RSI condition with a price condition. For example, tell me when
MSFT’s RSI is below 30, and the price breaks below 28. This could represent the ideal
buying conditions if I’m a value investor.

• DMI is a trend-following technique that looks at historical high and low prices to measure the
strength and direction of the trend.
• +DMI crosses above/below -DMI
This is the classic buy/sell signal. The +DMI crossing up through the –DMI is bullish,
suggesting the highs are getting higher and the price is in an uptrend.
• ADX crosses above/below threshold
The ADX line measures the strength of a trend. The higher the ADX, the stronger the
trend. The ADX does not imply direction- i.e. the ADX would be high in a strong uptrend
or a strong downtrend. The +DMI and –DMI indicate direction. An ADX > 20 suggests a
trending market; an ADX < 20 suggests a range-bound or sideways market.
• TD Sequential is the most popular of the DeMark indicators, and is used to identify trend
exhaustion points.
• Setup Count
The green numbers on the TD Sequential chart are called the Setup, and determine
when the price is trending. A green 9 suggests the market is trending, and poised for a
short-term reversal.
• Countdown Count
The red numbers are called the Countdown, and indicate when the trend is exhausted.
A red 13 suggests the market is overextended, and should reverse within the next 12
price bars. Note that you can be alerted for 11s, 12s, etc- so you can get a heads up
when the price is nearing the red 13 and a major reversal signal.

• Bollinger Bands analyze the volatility of a market and give an upper and lower boundary for
the price.
• Last Trade enters/leaves Bollinger Bands
When the price is outside the Bollinger Bands, this means there is extreme volatility. In
a sideways market, traders would expect for the price to quickly re-enter the bands,
giving a short-term trade opportunity. This selection includes both the upper and lower
bands.
• Last Trade crosses above/below Bollinger High
This isolates the upper band crosses, to identify securities that have had sudden upside
moves. A growth investor may treat this as a key buy signal, especially on heavier
volume.
• Last Trade crosses above/below Bollinger Low
This isolates lower band crosses, where securities have had sudden downside moves.
A downside break on heavier volume is often the beginning of a bearish slide.

• Stochastics are a momentum approach, used to identify when price has moved too heavily
in one direction.
• %D moves from overbought/oversold to neutral
The %D crossing below 80 is a sell signal, while a cross above 20 is a buy signal.
• %DS moves from overbought/oversold to neutral
The %DS is a smoothed version of the %D line, the signals are the same.
• %DSS moves from overbought/oversold to neutral
The %DSS is a smoothed version of the %DS line, the signals are the same.
• %K crosses %D
This is the traditional buy/sell signal for stochastics, although many people use the
smoothed versions explained above.
• Fear & Greed is one of the Bloomberg proprietary indicators, using Average True Range to
identify significant price momentum.
• Fear & Greed crosses above/below Threshold
The most common use of this indicator is to see when the Fear & Greed value crosses
the zero line. On a specific security, you can look for when the Fear & Greed hits very
high/low levels, as this suggests a significant market move.

• Highs and Lows identifies securities reaching new extremes in price.

• Last Trade reaches new high/low
The most important feature here is the ability to run custom periods. That is, you could
look for 20-day highs, 65-week highs, 5-day lows, etc. Many users have their own ideas
on what constitutes the most meaningful time period, and ALRT can accommodate them
all.

• TD Combo is one of the DeMark indicators, and is used to identify trend exhaustion points. It
is very similar to TD Sequential, but has different rules for the Countdown period.
• Setup Count
The green numbers on the TD Combo chart are called the Setup, and determine when
the price is trending. A green 9 suggests the market is trending, and poised for a short-
term reversal. The green 9’s here are the same as in TD Sequential.
• Countdown Count
The purple numbers are called the Countdown, and indicate when the trend is
exhausted. A purple 13 suggests the market is overextended, and should reverse within
the next 12 price bars. Note that you can be alerted for 11s, 12s, etc- so you can get a
heads up when the price is nearing the purple 13 and a major reversal signal.

• Parabolic Systems are considered a “trailing stop” technique, determining when a trader
should take profits on a winning trade or cut losses on a losing one.
• Last Trade crosses above/below SAR
This indicator is most valuable when the price is in a confirmed trend. If a security is in
an uptrend, set an alert for when the price crosses below the SAR. This would generate
an automatic signal once the trend has reversed down.