I heard that tight clothing on woman is not permitted,
It shows the shape of the body.
Is this true? what does this mean practically?
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The most comprehensive book on the subject is Rabbi E. Falk's 700 page "Sefer Oz Ve-hadar Levushah: Modesty, an Adornment for Life : Halachos and Attitudes Concerning Tznius of Dress & Conduct" which you can preview - and partially read - at Google Books.
He discusses the guidelines of tight clothing, and why it's an issue.
You can search the book for tight, to get some ideas.