Understanding the 5 Minute Consolidation Breakout Alert

This alert describes a consolidation breakout pattern and describes the same general pattern as the channel breakout alert. However, this alert uses more traditional methods of analysis, and may be easier to see on a stock chart. For one thing, this alert works on one specific time frame, where the channel breakout alert automatically looks at a wide range of timeframes. Also, this alert pays more attention to time, and very little attention to volume. Finally, this alert does not require any confirmation; a single print can create an alert.

To see this alert clearly, configure your stock chart to show candlesticks. And show exactly 41 periods in the chart. This pattern will be visible on other charts, but it will be easiest to spot on a chart configured in this way.

Our definition of a consolidation removes any stock with empty candles. If a stock hasn’t traded at all in some time, that does not count as a consolidation pattern. Each candle in the consolidation must contain at least one print

Default Settings

By default, the 5 Minute Consolidation Breakout alert will appear when the stock price moves upward outside of the range of the consolidation pattern. If the price continues to move in the same direction, and it moves quickly enough and far enough, we will report additional alerts.

Custom Settings

For '5 Minute Consolidation Breakout' alerts, you have the option to use an alert specific filter. This filter is located immediately to the right of the corresponding alert and is always optional. You can decide to leave it blank if you want to receive more alerts, or you can fill it in to restrict the number of alerts you receive. This filter allows you to specify the quality of the alert. When you set a higher number for this filter, you are telling the alerts server to display only alerts that meet a higher quality standard, resulting in fewer alerts being shown.

When setting an alert for '5 Minute Consolidation Breakout', the user can filter the alert in dollars, showing how far the last print was above the top of the consolidation pattern.

Description Column

The description of the alert will give you more details on the alert.

Quality Column

Add the quality column to a scan using the '5 Minute Consolidation Breakout' alert to see the dollar value difference between the top of the channel and the last print at the time of the alert.