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3 Weeks Tight Indicator for TradingView

3 weeks tight is a bullish continuation pattern first documented 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.

Head over to TradingView to install the Three Weeks Tight indicator

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 indicates 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.

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RS Line vs RS Rating – What’s the Difference?

A common question regarding MarketSmith: what is the difference between the RS Line and RS Rating?

I originally wrote a short post describing the differences (see below). The video tutorial that follows provides some additional insight as well as highlights several examples on how to use both indicators when scanning for growth stocks.


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How to Trade Like an Investing Champion – Annotated Chart

Investor’s Business Daily recently hosted a webinar How to Trade Like an Investing Champion. The moderator, Irusha Peiris, was joined by U.S Investing Champions David Ryan (1985, 1986 and 1987) and Mark Minervini (1997). This is an excellent webinar to get insight into how these award winning traders analyze both the market and stock setups.

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Divergence and True Market Leaders

One sign of a potential true market leader is when there is a divergence of the stock’s price action versus the overall market. In this post I’ll show several examples where the S&P 500 was moving down while a stock was moving up, preceding a large gain over the coming months.

As with any technical or fundamental indicator, divergence is no guarantee of upward price movement. However, as you’ll see, divergence may be foretell a winning stock, one that can make a significant move higher.

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