Tight Areas

Tight Areas

Tight Areas can often be a sign of strength within a chart. We identify a Tight Area when the closing price for at least three consecutive weeks is within a 1.5% +/- band. MarketSmith’s Pattern Recognition feature will highlight the area with a blue oval when such a condition is reached.

Tight Areas can serve as alternate entry points for adding to an existing position or establishing a new position when an initial breakout is missed.