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AI Strategies

MarketAlpha’s AI Strategy engine calculates real-time long and short trade setups directly on the chart — based on structure, trend, and risk/reward dynamics.

Each strategy is visualized as a special risk/reward candle, which outlines the entry zone, stop level, and two target levels. These overlays allow you to see at a glance how much potential reward exists relative to risk, and whether price is in a favorable location to act.

Users can toggle between:

  • Auto (AI-detected bias: Long or Short)
  • Long (show only long setups)
  • Short (show only short setups)
  • Hide (turn off all strategy overlays)

All AI strategies update in real time throughout the session as new price data arrives — adjusting stop and entry zones, R/R ratios, and directional signals without waiting for the market close.

How Risk/Reward Works​

Each strategy overlay appears as a vertical candle divided into two colored zones:

  • Red zone (below entry) = calculated risk — the distance to the AI-defined stop level
  • Green zone (above entry) = calculated reward — the projected path to the first and second targets

This special candle structure provides an immediate visual of the trade’s setup quality:

  • A taller green section indicates more upside potential relative to risk
  • A compressed red section reflects tighter stop placement

These risk/reward candles are grounded in structural analysis — stops are placed near key invalidation zones, while targets align with resistance, Fibonacci extensions, or support levels. Nothing is arbitrary.

Importantly, both targets and stop levels are determined using a proprietary cluster detection model, which identifies areas where multiple support or resistance levels converge. These clusters represent zones where price is most likely to react — making them ideal for realistic and structurally strong targets. Rather than projecting based on arbitrary distance or trend slope, the AI locates high-density level clusters for supply and demand, which serve as natural barriers and reliable profit-taking or exit points.

All of this can be screened using filters like:

  • Risk/Reward Ratio
  • Distance to Stop or Target
  • Strategy Type (Auto, Long, Short)
  • Resistance Path Count
  • Proximity to Support/Resistance
  • Trend Alignment and Setup Strength

Auto Strategy​

The Auto strategy displays setups for the AI's directional bias — either Long or Short.

This bias is generated using a proprietary model that blends:

  • Structural signals (support/resistance, trendlines, AVWAPs)
  • Momentum and divergence data
  • Multi-timeframe trend validation
  • Context from price gaps, earnings, and volume behavior

The Auto strategy serves as your default signal — showing only the most aligned opportunities where price structure and direction are clearly in agreement. It's designed to reduce noise, filter out weak setups, and surface directionally confident trades in real time.

Targets and stops for Auto strategies are selected based on clustered support and resistance zones, where the AI identifies overlapping technical levels from AVWAPs, pivots, trendlines, and other overlays. This ensures that each strategy is aligned with realistic, high-confidence price areas.

You can screen for Auto-based setups using indicators like:

Long Strategy​

The Long strategy reveals long setups, regardless of current AI directional bias.

These are based on the same structure-aware calculations, including:

  • Entry near support, AVWAPs, or consolidation zones
  • Stop levels just under recent pivot lows or invalidation structures
  • Targets aligned with resistance, gap fills, or Fibonacci zones

Long strategies are useful when:

  • Scanning for bounce setups
  • Looking for pullbacks in uptrends
  • Building discretionary watchlists with bullish setups

Even if the Auto bias is neutral or short, Long mode lets you find and validate bullish opportunities based on structure alone.

Target and stop zones are selected using cluster detection logic, meaning the system finds areas with multiple overlapping support/resistance levels. This improves the reliability of the R/R calculation and helps identify realistic targets — not just theoretical ones.

You can filter long setups using:

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Use the Long Risk/Reward profile for long-only setups not selected by MarketAlpha’s AI Alpha Strategy engine. Ensure to activate Long AI Strategy on Alpha Charts and save your chart settings.

Short Strategy​

The Short strategy displays bearish setups — again, independent of AI directional bias.

Short setups typically involve:

  • Entry after failed breakouts or bounce rejections
  • Stops placed just above recent swing highs or resistance
  • Targets positioned at support levels, breakdown gaps, or volume voids

Short strategies help identify:

  • Failed rallies and bearish reversals
  • Momentum continuation after breakdowns
  • High reward/risk downside opportunities

Just like long setups, short strategy targets and stops are grounded in clustered resistance/support zones, ensuring that exit points align with areas of likely price reaction. This helps filter out setups with low structure or unrealistic reward potential.

These setups can be screened using:

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Use the Short Risk/Reward profile for long-only setups not selected by MarketAlpha’s AI Alpha Strategy engine. Ensure to activate Short AI Strategy on Alpha Charts and save your chart settings.

Fully Integrated with Alpha Charts​

Every AI strategy is built on top of the Alpha Charts indicator framework — combining:

  • Auto trendlines
  • AVWAPs (peak, bottom, YTD, IPO)
  • Gaps and pivot zones
  • RSI-based divergences
  • Fibonacci retracements and extensions
  • Structural support/resistance overlays

Because of this integration, setups are never generic. They’re drawn from actual structure and updated constantly as new data arrives.

And since everything is fully screenable, you can find exact strategy types across thousands of tickers — and filter based on real-time strength, risk, and trend context.

MarketAlpha’s AI Strategy system does more than draw trade ideas — it visualizes structural setups, anchors them in chart logic, and lets you act on them instantly across the entire market.