JohnMuchow

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.
Release Notes: 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.
Release Notes: version 3.0

Updates:
■ Percent change calculations have been updated.
■ Settings dialog now groups together similar features.
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?
30+ years in software dev. Technology author. Growth stock and crypto trader. Technical analysis geek.

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Kommentarer

Nicely done! Great easy to read code too, thanks for that!
100 coins
+1 Svara
JohnMuchow drewby4321
Thanks Drew! And thanks for your thorough market updates.
+1 Svara
Excellent!
100 coins
+1 Svara
@FGG5, Thank you very much! I hope you find it helpful.
Svara
Can you please check if his script is in working condition ? , I tries this on atleast 50 charts and i didnt see it working.
+2 Svara
JohnMuchow PhaniNerella
The script is only applicable on a weekly timeframe, so make sure you are viewing a weekly chart. Also, it will only appear when three weeks in a row meet the criteria as defined in Settings.
Svara
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!
+1 Svara
JohnMuchow LanceAtredeis
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.
Svara
Do I just copy the code as is? it doesn't seem to work? I get the statement invalid statement: // at 1:1
+1 Svara
JohnMuchow QMAX1234
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.
Svara