Path to Target
The Path to Target metric measures how structurally difficult it is for price to reach the AI’s projected final target level. It counts the number of support or resistance zones that sit between the current price and the strategy’s final target — depending on whether the setup is Long or Short.
This metric is especially useful in momentum or breakout strategies, where clean directional movement matters most.
Why It Matters
Even when a trade setup appears valid, nearby resistance or support can block price progress. These structural barriers increase friction and reduce the probability of follow-through.
MarketAlpha’s AI measures this friction by counting how many overlapping levels exist along the projected price path. This helps:
- Prioritize clean trend setups
- Avoid trades with high congestion
- Improve risk/reward accuracy
How It Works
The Path to Target is calculated using the following logic:
- Long Strategies: Counts how many resistance zones exist between the current price and the final target
- Short Strategies: Counts how many support zones lie between price and target
These zones include:
- Clustered resistance/support from AVWAPs, MAs, pivots, and gaps
- Trendlines and recent rejection areas
- Fibonacci retracement and extension intersections
Score Breakdown
MarketAlpha categorizes the path score as follows:
- 0 zones – No structural barriers; clean open path to target
- 1 zone – Light resistance; minimal friction
- 2 or more zones – High congestion; multiple obstacles in the way
The score updates in real time as price evolves and structure shifts.
How to Use It
In practice, Path to Target helps identify trades with strong continuation potential.
You can filter by this value in screeners to:
- Surface momentum-friendly tickers
- Prioritize breakouts with no overhead resistance
- Avoid structurally blocked setups, even if they look visually clean
This is especially helpful for day traders and breakout strategies where clean movement is essential.
Path to Target brings clarity to price structure. Instead of guessing how likely price is to reach a target, you can measure the journey — and filter only for the cleanest, most tradable paths.