IBD rule | Key points about the 8-week rule:

 The "IBD 8-week rule" refers to a stock trading strategy from Investor's Business Daily (IBD) where if a stock gains more than 20% within three weeks of breaking out from a proper chart pattern, you should hold it for at least eight weeks to potentially capture larger gains, as this indicates a strong market leader with the potential for significant growth; essentially, it encourages investors to stay invested through potential short-term volatility to reap bigger rewards from exceptional stocks. 

Key points about the 8-week rule:

• Fast movers:

  This rule applies to stocks that rapidly rise more than 20% within a few weeks of breaking out, signifying strong institutional interest and potential for further gains.
• Holding period:

  Once a stock triggers the 8-week rule, you should hold it for at least eight weeks from the breakout point before considering selling.
• Identifying strong leaders:

  The 8-week rule helps identify stocks that could become long-term market leaders, allowing investors to ride the wave of strong upward momentum. 

Important considerations:

• Not for every stock:

  This rule should only be applied to stocks with strong fundamentals and clear chart patterns that exhibit the rapid price increase characteristic of a true market leader. 
• Market conditions:

  Be aware that during volatile market periods, the 8-week rule might need to be adjusted based on the overall market behavior.