Most sensing applications of e-textiles use switching, piezoresistivity or optics for direct touch sensing. This instructable shows you how to start exploring another approach - capacitive sensing to measure touch and proximity. It is based on the easy-to-use, cheap capacitance sensing chip evaluation board from Atmel/Qtouch and takes only minutes to create.
Identify the plates where the capacitance is measured. Notice the thin conductive PCB trace between each larger plate.