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AFT stands for Anchor Column Follow Through Pattern.
TradePoint and RZone have 4 bearish AFT patterns.
> Bearish AFT
> Bearish AFT – Anchor breakout
All these patterns belong to the same AFT family. These options allow you possibilities of using variations of these patterns based on your preference.
Below is an explanation for the Bearish AFT.
The bearish anchor column represents strong bearish momentum in the stock.
After the bearish anchor column, the follow-through breakout helps identify bearish trade opportunities.
Bearish Follow-through pattern is a double bottom sell pattern.
The follow-through pattern that took place within 9 columns in the AFT pattern is effective (8 columns after Anchor column). It is possible for the Bearish Anchor column to appear in any column during the last 9 columns. The price should not break the anchor column high or low before triggering a follow-through breakout.
Double bottom sell pattern in the 4th column after bearish anchor column is a 4-column AFT pattern. Double bottom sell pattern in the 6th column after bearish anchor column is a 6-column AFT pattern. And the breakout in the 8th column is an 8-column AFT pattern.
A bearish AFT pattern considers all these scenarios and marks the pattern accordingly.
When you scan for a Bearish AFT pattern, you get a list of stocks that qualify for the pattern in the 4th, 6th, or 8th column after the Anchor column.
The bearish AFT pattern shows strong downtrend and a bearish breakout in the stock.
If you also want to scan for a follow-through pattern immediately after the anchor column, use the Immediate Bearish AFT pattern in conjunction with Bearish AFT pattern.
This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.