3 Weeks Tight - Introduction 3 weeks tight is a bullish continuation pattern discovered by IBD's founder, William O'Neil.
The pattern can used as an opportunity to add to an existing position as it often occurs after a breakout above a cup with handle or other technical pattern.
The 3 weeks tight pattern forms when a stock closes within approximately 1% to 1.5% of the prior week's close for at least two weeks. The reason for the bullishness is that it indciates that investors who moved the stock upward in price since the breakout are not taking profits, the price is holding steady.
The buy point is just above the area of resistance formed at the highs of the three weeks plus 10 cents. The ten cent addition to the price is to ensure a push through the resistance at the high of the range.
Key Points:
It's preferred that closes for each week are in the upper half of the stock's range.
Ideally, volume will increase significantly as the stocks moves past the buy point.
This pattern generally performs best when the market is in an uptrend.
Features:
A configurable horizontal bar that spans the 3 week period.
A vertical band that highlights the tightness pattern.
A label to show the buy price after 3 week tight pattern.
Optional alert when the 3 weeks tight pattern is recognized.
ملاحظات الأخبار
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version 2.0
Updates: ■ The offset of the "Buy price" can be moved up/down. ■ The font size of the "Buy price" can be configured.
ملاحظات الأخبار
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version 3.0
Updates: ■ Percent change calculations have been updated. ■ Settings dialog now groups together similar features.
Nicely done! Great easy to read code too, thanks for that!
JohnMuchow
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Thanks Drew! And thanks for your thorough market updates.
FGG5
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Excellent!
JohnMuchow
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@FGG5, Thank you very much! I hope you find it helpful.
Paaglet_Investor
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Can i see weekly tight closings on daily time frame? , that would be great !
JohnMuchow
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I followed the original design from William O'Neil and look for tight weeks on a weekly chart, as that was the primary timeframe in his analysis.
Paaglet_Investor
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@JohnMuchow, i too do the same , but my point is will it be possible to plot weekly tight weeks on DAILY time frame, that way from daily time frame itself i can see weekly tight labels without the need to switch to weekly time frame
JohnMuchow
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Although I can't make any promises, I'll add the idea to my list of potential updates. Thanks for sharing.
LanceAtredeis
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Hi John, all your scripts are excellent, thanks for sharing them!
Question: when you do an update, do people who have already installed the script need to do anything on their end? Or is it automatically updated?
Thanks!
JohnMuchow
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You're welcome. As far as I know, there is no automatic update to scripts, you'll need to delete the indicator and install the latest version. Although it doesn't solve the issue, if you are interested, you can follow my account and you should be notified when there is an update available.