public static void createCloudWatchPolicies() {

    System.out.println("Preparing Alarms..");

    watchClient = new AmazonCloudWatchClient(awsCredentials());

    // Scale out alarm
    PutMetricAlarmRequest scaleOutRequest = new PutMetricAlarmRequest();
    scaleOutRequest.setAlarmName("ScaleOutAlarm");
    scaleOutRequest.setMetricName("CPUUtilization");

    List<Dimension> dimensions = new ArrayList<Dimension>();
    Dimension dimension = new Dimension();
    dimension.setName("AutoScalingGroupName");
    dimension.setValue("ProjectTwoAutoScaleGroup");
    dimensions.add(dimension);
    scaleOutRequest.setDimensions(dimensions);

    scaleOutRequest.setNamespace("AWS/EC2");
    scaleOutRequest.setComparisonOperator(ComparisonOperator.GreaterThanThreshold);
    scaleOutRequest.setStatistic(Statistic.Average);
    scaleOutRequest.setUnit(StandardUnit.Percent);
    scaleOutRequest.setThreshold(70d);
    scaleOutRequest.setPeriod(60);
    scaleOutRequest.setEvaluationPeriods(1);

    // Linking alarm to policy
    List<String> actions = new ArrayList<String>();
    actions.add(scaleOut);
    scaleOutRequest.setAlarmActions(actions);

    // Scale in alarm
    PutMetricAlarmRequest scaleInRequest = new PutMetricAlarmRequest();
    scaleInRequest.setAlarmName("ScaleInAlarm");
    scaleInRequest.setMetricName("CPUUtilization");

    scaleInRequest.setDimensions(dimensions);

    scaleInRequest.setNamespace("AWS/EC2");
    scaleInRequest.setComparisonOperator(ComparisonOperator.LessThanThreshold);
    scaleInRequest.setStatistic(Statistic.Average);
    scaleInRequest.setUnit(StandardUnit.Percent);
    scaleInRequest.setThreshold(20d);
    scaleInRequest.setPeriod(60);
    scaleInRequest.setEvaluationPeriods(4);

    // Linking alarm to policy
    List<String> actionsTwo = new ArrayList<String>();
    actionsTwo.add(scaleIn);
    scaleInRequest.setAlarmActions(actionsTwo);

    watchClient.putMetricAlarm(scaleOutRequest);
    watchClient.putMetricAlarm(scaleInRequest);

    System.out.println("Alarms set successfully..");
  }