7 Week Rule

The 7 week rule was shared by Gil Morales in his book “Trade Like an O’Neil Disciple”. The rule is described as: Stocks that have shown a tendency to “obey” or “respect” the 10-day moving average for at least 7 weeks in an uptrend should often be sold once the stock violates the 10-day line. A “violation” is defined as a close below the 10-day moving average followed by a move on the next day below the intraday low of the first day.

This indicator makes using the 7 week rule easy. Once a stock has closed above its selected moving average (10SMA by default) for 35 days the 7 week rule is triggered. Once the stock then “violates” the moving average, a sell signal is printed on the chart.

Indicator Customizations

• Moving Average Length & Type
  
• Show or Hide Moving Average
  
• Show Running Count of Days Above Selected MA
  
• Highlight When 7 Week Rule Triggers
  
• Option to Show First Day Above MA
  

Indicator is dynamic and will continue the count if no violation occurs.

Release Notes:

Small change to day 1 label placement