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Proximity Detection

MarketAlpha’s Proximity Detection system identifies when the last traded price is close to or pressing against major technical levels — including moving averages, anchored VWAPs, and structural support or resistance zones.

Rather than using a fixed percentage or absolute distance, MarketAlpha’s proprietary AI mimics how a technical analyst would interpret "near":

  • Visually noticeable proximity on a daily chart
  • Price flirting with, tagging, or hovering around a level
  • Context-aware: not just closeness, but meaningful interaction with trendlines, averages, or pivots

This allows the system to highlight inflection zones where price may pause, reverse, or break through — making it an essential signal for both breakout and mean-reversion strategies.

What Proximity Includes​

Proximity is evaluated for the following indicator types:

Moving Averages Near Price​

Detects whether the current price is visually and structurally close to:

  • Simple Moving Averages (SMAs): 20, 50, 100, 200 days
  • Exponential Moving Average (EMA): 20-day
  • IPO AVWAP: volume-weighted anchor from a stock’s first trading day

These zones often act as dynamic support or resistance, especially during pullbacks or trend retests. Proximity to a moving average can indicate:

  • A bounce zone in a trend
  • A potential breakdown or reclaim area
  • An inflection point following momentum compression

Price at Resistance/Support​

Detects whether the current price is pressing against a known structural level drawn by the Alpha Charts system. These levels include:

  • AVWAPs from peaks, bottoms, YTD, or IPO
  • Confirmed swing highs/lows
  • Trendline resistance or slope support
  • Clustered moving average zones or Fibonacci levels

If price is near or testing one of these zones, MarketAlpha flags it as being at resistance or support.

This is useful for:

  • Spotting breakout attempts or failed rejections
  • Timing pullbacks near established support
  • Surfacing retest setups with momentum potential

Compact Name: Price At Res/Sup

Why It Matters​

Proximity is often a precursor to:

  • Breakouts — price hovering just below resistance with volume buildup
  • Reversals — price stalling into major levels after a run
  • Pullbacks — price returning to support before resuming trend

The signal is more nuanced than raw distance — it considers:

  • Volatility context
  • Recent trend slope
  • Level importance based on clustering

This makes it far more accurate and useful than simple “X% from MA”.

Screener & Watchlist Usage​

You can filter or tag tickers using:

  • Moving Averages Near Price — to find clean bounce or breakdown setups
  • Price At Resistance/Support — to identify stocks testing critical structural zones

These proximity signals are often used alongside:

  • Alpha Strategy direction
  • Risk/Reward setups
  • Confidence Score
  • RSI Divergence or Tight Range setups

Proximity Detection helps you spot moments when price and structure collide — when the chart is coiled around something meaningful. Whether you’re looking for reversals, breakouts, or high-probability pullbacks, this signal shows you where key interaction is happening.