Tight area or a tight chart pattern is established when a stock trades tight and closes narrowly for three weeks in a row. In a tight chart pattern, the close of week two is within 1.5% of week one's close; and the close of week three is within 1.5% of week two's close. A tight area can be a great opportunity to add shares to a current holding. Often top-quality consolidations show tight trading. This pattern tends to work best with the market's top leaders like stocks with excellent fundamentals and price action. MarketSmith’s Pattern Recognition feature will highlight the area with a blue oval when such a condition is reached.