Matt explains what the first alarm price is here. https://breakpointtrades.com/blog/post/330093/

    In summary it is not the price that triggers the trade. Other than the spy system they do not send out buy or sell prices. The alarm is set  near an area that price MAY break to the upside for a long or down for a short. Never buy off an alarm, it's purely a heads up that if you're tracking a potential stock entry that it's price has hit that alarm price, and it may be in a place to trigger. The expectation here is that you determine what your trigger is before price hits that alarm price. The alarm simply helps you know that price is near an inflection point, and depending on your criteria to enter a trade, price may be near that point. 

    Regarding the second alarm price my understanding is, when they put a trade idea that looks like it could either break to the upside for a long or break to the downside for a short, the first alarm is a heads up that price is moving to the upside and may fit your criteria to go long, while the second alarm is a heads up that price is breaking to the downside and may fit your criteria to go short. Generally speaking I find that by the time an alarm goes off as, price has moved past what I want to buy it at, so I don't focus on the alarm, but instead review the trade ideas and  determine what my trigger would be to initiate a trade.

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!