Power from Pivot Flag
Stocks advancing in price 20% or more within 15 days (3 weeks) of the Pivot are marked with a Power from Pivot Flag on the chart when our Pattern Recognition feature is enabled. If you encounter this scenario with a stock with top quality fundamentals and technicals, MarketSmith founder William J. O’Neil advises you consider holding the stock at least eight weeks from the Pivot to avoid getting shaken out of a stock that might have the possibility of being a big winner.
At the eight week mark, you should reevaluate if the stock should continue to be held. The percentage in the flag indicates the highest percentage gain the stock reached during the first 15 days from the Pivot.