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3 Weeks Tight - CANSLIM Technical Indicator

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.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?
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Comments

Nicely done! Great easy to read code too, thanks for that!
100coins
+1 Reply
PlayTheTrade drewby4321
Thanks Drew! And thanks for your thorough market updates.
+1 Reply
Excellent!
100coins
+1 Reply
@FGG5, Thank you very much! I hope you find it helpful.
Reply
Do I just copy the code as is? it doesn't seem to work? I get the statement invalid statement: // at 1:1
+1 Reply
Have you installed the indicator? If not, I'd recommended adding to favorites and then adding to your chart via the Indicators menu option.

Also note, you must be on a weekly chart to see the indicator output.
Reply
QMAX1234 PlayTheTrade
@PlayTheTrade, I clicked the button on her to make it a favorite. New to think or swim so I'm figuring out how to add it via the indicator menu option. The only way I was shown how to add it was copying the code which gives me that error but it appears you are saying it's another way to do it without code copying.
Reply
QMAX1234 PlayTheTrade
@PlayTheTrade, how do you install the indicator?
Reply
Once you've added as a Favorite, when you are on a chart, select the Indicators menu on the top. Select the Favorites option on the left. Tap on the name of the indicator to install on your chart.
Reply
QMAX1234 PlayTheTrade
@PlayTheTrade, I am on the Think or Swim Desktop and on the chart and there is no such thing to select indicator menu or the favorite option. All I see is share, Chart Describer, edit studies, chart settings, time frame setup, chart style settings, drawing tools, analysis tools, pattern analysis tools, but no indicator menu. How can I access that?
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