Direct answer
A worked example of Technical Alerts is a fully specified scenario that shows how a pre-defined rule (for example, “price crosses a level”) is checked against inputs (example: candle high/low or last traded price) and when it generates an alert event. The key point is transparency: every assumption—what data is used, what threshold is applied, and what “crosses” means—must be stated so another reader can verify the same result.
Mechanism and definition
A Technical Alert is an automated notification produced when a rule based on market data is evaluated. The “technical” part means the rule uses observable inputs such as price levels, indicator calculations, or patterns applied to historical or live price series. The “alert” part means the system emits an event when the rule evaluates to true.
A worked example should separate stable mechanics from variable conditions:
- Stable mechanics: the logical rule (the condition), the order of evaluation, and the conversion of inputs into an event.
- Variable conditions: market movement, data source differences (feeds, candle construction), and costs/execution differences (especially if the alert is interpreted as trade-related).
Even if no trading action is taken, the example must still define inputs precisely. For instance, do you use candle close, candle high/low, or an instantaneous price? Does “cross” require touching or strictly moving from one side to the other?
Worked numerical example (with explicit assumptions)
Assume a Technical Alert rule:
- Rule: “Trigger when the latest candle’s high is at or above 1.1050, and the previous candle’s high is below 1.1050.”
- Data assumptions: you are using candle high values from the same time frame; each candle represents one hour.
- Interpretation of values: “at or above” means high ≥ 1.1050.
Now provide two consecutive candles (prices are hypothetical example inputs):
- Candle 1 (previous hour): High = 1.1038
- Candle 2 (latest hour): High = 1.1052
Step-by-step evaluation:
- Check Candle 1 condition: previous high < 1.1050. Here, 1.1038 < 1.1050 is true.
- Check Candle 2 condition: latest high ≥ 1.1050. Here, 1.1052 ≥ 1.1050 is true.
- Both parts are true, so the Technical Alert rule evaluates to true.
Result: under these stated assumptions, an alert event is generated at the time you evaluate the rule using Candle 2’s high.
How this illustrates “verification”
Another reader can verify the outcome by applying the same rule to the same inputs and confirming the inequalities. If a different provider uses candle highs constructed differently (or evaluates using candle close instead of high), the alert may not trigger.
Limitations and risks (material failure modes)
- Data and definition mismatch: Different platforms may compute “high/low,” candle boundaries, or indicator inputs differently. If the example assumes candle highs but the system uses last price, the alert can trigger at different times or never trigger.
- Ambiguous timing: If the rule is evaluated only after a candle closes, it may appear “late” compared with an evaluation during the candle. If it is evaluated intrabar, it may create more frequent events.
- Parameter sensitivity: Small changes to thresholds (for example, 1.1050 vs 1.1051) can flip the alert result. This is a mechanical limitation: the rule is deterministic once inputs and thresholds are fixed.
- Cost and execution differences (interpretation risk): Even though the alert rule itself does not guarantee outcomes, people sometimes interpret alerts as trade timing. Costs (spreads/fees) and execution latency can change realized results versus the alert moment.
- Historical vs future behavior: Even if a similar rule worked on past data, that does not establish future performance; markets and data feeds can change.
Verification and next question
To independently verify a Technical Alert example, restate:
- the exact rule (each inequality and logical connector),
- the exact inputs (high/low vs close vs last price; time frame; candle boundaries), and
- the evaluation moment (after candle close, intrabar, or at a specific timestamp).
If you want a second worked example, specify a different rule type (for example, “indicator crosses above a threshold”) and define the indicator calculation method and sampling window used by the system you want to mirror.