Alerts are notifications sent by LevelFields whenever a corresponding new event is published in a LevelFields Scenario.
Alerts enable members to react quickly to the developing event affecting a company and determine if they want to trade on the opportunity. Alerts are a main way that LevelFields members benefit from the data collected and filtered by the LevelFields AI software.
There are 3 types of LevelFields alerts:
- Platform alerts from Scenarios
- Platform alerts that are customized
- Premium alerts (Level 2 members only)
1. Platform Alerts from Scenarios: You may sign up for an alert for any scenario from the home page of the application or by clicking the Scenarios items in the navigation menu up top. On the upper right corner of each scenario card is a switch.
To receive the alert from a scenario, simply switch the button to on. Once on, you will receive an alert anytime an event that meets the criteria of that scenario occurs. For example, to receive all stock buyback alerts, turn on the alerts for stock buybacks.
These alerts are sent within a few minutes after the event is published on the application.
2. Platform alerts that are customized: The are alerts you set, based on filters you select. They can be created from the Dashboard or from an individual scenario page using the filters on the left side.
You can set alerts based on the criteria of one scenario at a time. However, you can filter the events by company sector/industry, company financials, or by the watchlists you create.
To receive Alerts, you must first sign up to receive Alerts for one or more Scenarios.
Related: How to Sign Up For LevelFields Alerts
Alerts are sent via email to the address linked to your account. Alerts are also posted to the Dashboard section of the site, where a running list of the last 90 days of Alerts is available for viewing.
All Alerts include the time and date of the event, a brief description of the event, the ticker symbol of the company affected, and the next earnings announcement for the company.
3. Premium Alerts (Level 2 members): These are alerts that are created by or filtered by our analysts. They are flagged as high probability based on events our platform identifies though they may also be based on events that occur but are not available on the platform.
Level 2 alerts often come with trade setup ideas as well as entry and exit targets to assist members.
Level 2 alerts are either sent in the Level 2 weekly newsletter or as email/SMS alerts if the information is timely.
Related: What are Level 2 Alerts
What do I do with the alerts?
The alerts are notifying you an event has occurred. This is an opportunity to trade the stock on the event, or invest in the company. For alerts from bullish scenarios, the stock usually rises but there are some important caveats to understand before trading:
- A bad earnings report can alter the bullish event's impact. For example, if a company reports earnings below market expectations and on the same day announces a large stock buyback, the stock may fall instead of rising on the bad earnings report. It's essential to check the earnings dates on the alerts to determine if the day you received the alert coincides with an earnings announcement. If it does, you need to read the earnings announcement before investing in the stock.
- Negative sentiment in the broader market can kill a trade. If the stocks indexes (e.g. S&P 500) is very negative (>.5%), the market sentiment may force other traders to sit out the day's trading action. As a result, a bullish event may not perform as well as it would during bullish days. This can occur on large macro events, like Federal Reserve meetings, policy changes, or economic reports like the CPI (inflation) reports.
- Check the time of the alert. If you don't notice the alert until a day or two later, it might be too late to trade on it depending on the scenario type. Some scenarios move fast, others are longer term.
- Look at the average 1Day price move in the scenario. This exists to show you how most stocks, in aggregate, are affected by share price. NOTE: stocks from different sectors are affected differently slightly by the events. Using the filters, you can quickly see how stocks from different sectors are affected. You can use this information to determine the exit price if you're trading the event.
You can also use the Table View to look at price moves of previous events over longer time frames.
As a general rule, the more time that passes after an alert, the more time there is for the rest of the market to learn about it and react. Events that occur afterhours may be largely priced in by the opening time of the market the next trading day unless the stock is heavily traded. There are 14.5 hours between an alert that happens at 5pm ET and the next day's open at 9:30am. That leaves a lot of time for people to hear about the information and react to it.
It is important to note that few asset managers trade after hours, there is will likely still be trading happening intraday, often following a reversal where those who owned the stock before the bullish event sold into the rally, causing the stock to drop at the opening bell. Larger, more experienced asset managers will use these selloffs as their entry point for buying the stock. By the closing bell, the stock price might be the same as it was at the open which makes it appear like the event was price in afterhours. But looking at the ups and downs of the intraday move shows this is not usually true. Typically, there is a mean reversion following by more buying and thus opportunity to create gains intraday, even for large afterhours movers.
For this reason, some users prefer to set their alerts for events that only happen at certain times of day. You can easily do this in the alert settings. Go to Dashboard-->My Alerts and click on the bell icon next to the custom alert you've setup. Then drag the circles on the bar to set alert coverage for a particular window of time.
The alert setting below will only alert you to events that happen between 12am and 8am ET.
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