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Setups – Tight Range at EMA20

Overview​

The Setups – Tight Range at EMA20 profile surfaces liquid stocks that are trading in tight consolidation near the 20-day exponential moving average, with low resistance to the target and acceptable volatility. These setups often precede breakout moves and are ideal for users looking to trade structured price compression near dynamic support or resistance levels.

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This profile is updated in real time and applies filters automatically to identify high-quality consolidation setups near the EMA20. It can be used across all market sessions.

Strategy Focus​

  • Identify tight consolidation setups positioned near the 20-day exponential moving average
  • Focus on stocks with enough liquidity and volatility for clean execution and movement
  • Highlight setups with minimal structural resistance between price and the AI target
  • Surface potential breakouts from compression or basing formations
  • Validate with group and theme alignment to reinforce directional bias
  • Build entries around structure, volatility, and risk-aware positioning

Filters Applied​

The following filters are applied automatically in this profile:

  • Liquidity Rating > 70: Ensures the stock is highly liquid and suitable for clean order execution, with active institutional and retail participation.
  • ATRP 14D ≥ 0.5 and Volatility (Month) ≥ 1: Focuses on stocks with enough recent price movement and volatility to support tradeable breakout setups. Filters out low-volatility or stagnant names.
  • AI - Risk/Reward ≥ 2: Only includes setups where the AI-detected trade has at least a 2:1 potential upside relative to the calculated downside (stop vs target zones).
  • AI - Path to Target ≤ 1: Requires minimal resistance between current price and target (one or fewer structural zones) to ensure price has a clear route to follow through.
  • Tight Range = Yes: Selects stocks that are currently in a compressed range as of the most recent daily close.
  • EMA 20D Near Price = Yes: Filters for setups where the last price is currently near the 20-day exponential moving average, a commonly watched area of dynamic support or resistance.

These filters work together to surface breakout-ready setups with clean structure, strong positioning, and volatility that supports movement.

Metrics Used​

AI Strategy and Setup Quality​

  • AI - Alpha Strategy: Displays long or short directional bias based on structure and trend
  • AI - Risk/Reward: Shows stop and target distance to quantify trade potential — setups require a 2:1 or better ratio
  • AI - Path to Target: Counts how many resistance or support barriers remain between current price and target — setups must have low resistance (1 or fewer levels)

Price Action and Structure​

  • Tight Range: Flags compressed price action that often precedes expansion
  • Change Pre Market (%): Captures early movement relative to the previous close
  • Change From Close (%): Tracks intraday move strength based on prior close
  • RSI Divergence 14 Days: Highlights momentum divergence that may reinforce the setup
  • Universal Pattern Detection: Confirms if the setup aligns with one-sided pattern structure
  • Moving Averages Summary: Displays the directional trend and relative position of all key moving averages compared to the last price. Helps quickly evaluate trend alignment and momentum strength across multiple timeframes

Volume and Liquidity​

  • Volume All Hours: Total daily volume across all sessions
  • Relative Volume: Highlights abnormal trading activity for the current time of day
  • Dollar Volume Rank: Ranks stocks by capital flow to focus on the most active names

Sector and Theme Context​

  • Industry Rating 1 Day, Theme Rating 1 Day: Show intraday group strength
  • Industry Rating 1 Year, Theme Rating 1 Year: Reflect long-term leadership
  • Relative Strength 1 Day, Relative Strength 1 Year: Measure relative price performance

Fundamentals and Timing​

  • MarketAlpha Rating: Composite score summarizing fundamental and technical strength
  • EPS Rating, Sales Rating, Profit Rating: Highlight financial consistency and growth
  • Accumulation/Distribution Score: Measures recent institutional flow over the past quarter
  • 52 Week High (%): Shows how close price is to breakout or new high zones
  • Next Earnings In Days: Indicates how soon the next earnings report is due

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to highlight setups with high liquidity and attention. These stocks offer clean entries near structure with breakout potential and efficient execution.

Practical Use Cases​

  • Identify structured consolidation setups forming around the 20-day EMA
  • Focus on liquid names with strong risk/reward and minimal structural barriers
  • Use Multi-Charts to confirm tight ranges and EMA interaction visually
  • Filter setups with reliable volatility to support post-breakout follow-through
  • Plan breakout or trend continuation trades with defined structural timing
  • Combine group strength or fundamental ratings to refine setup confidence