Customer Support : 020-61923200, [email protected] | Call and Trade : 020-61923220
AFT stands for Anchor Column Follow Through Pattern.
TradePoint and RZone have 4 bullish AFT patterns.
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 Bullish AFT.
The bullish anchor column represents strong bullish momentum in the stock.
After the anchor column, the follow-through breakout helps identify bullish trade opportunities when momentum is strong.
Follow-through pattern is a double top buy 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 Bullish 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 top buy pattern in the 4th column after bullish anchor column is a 4-column AFT pattern. Double top buy pattern in the 6th column after bullish anchor column is a 6-column AFT pattern. And the breakout in the 8th column is an 8-column AFT pattern.
A bullish AFT pattern considers all these scenarios and marks the pattern accordingly.
When you scan for a Bullish AFT pattern, you get a list of stocks that qualify for the pattern in the 4th, 6th, or 8th column after the Anchor.
The bullish AFT pattern shows strong bullish momentum and a continuation breakout in the stock.
Patterns such as the Flag, VCP, or any other pattern that identifies an instrument giving a breakout in a strong trend following a consolidation or correction are usually AFT patterns. AFT is a strong bullish pattern in P&F format.
If you also want to scan for a follow-through pattern immediately after the anchor column, use the Immediate Bullish AFT pattern in conjunction with Bullish AFT pattern.
This pattern can be plotted on the chart by adding it from the Add study menu in TradePoint & Patterns in 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.