Bearish AFT – Immediate breakout

AFT stands for Anchor Column Follow Through Pattern.

TradePoint and RZone have 4 bearish AFT patterns.

> Bearish AFT

> Bearish Probable AFT

> Immediate AFT – Bearish

> 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 bearish AFT pattern shows strong downtrend and a bearish breakout in the stock.

When the double bottom sell pattern is immediately followed by the anchor column, it shows strong bearish momentum.

The bearish AFT pattern is a 3-columm pattern that shows strong bearish momentum and a bearish continuation breakout in the stock.

When you scan for a Bearish AFT pattern, you get a list of stocks that qualify for the immediate bearish anchor column breakout.

You can also limit the initial risk by defining the number of boxes below the breakout column. For example, if you want to limit the retracement before the pattern to 10 boxes, you can achieve it by selecting the condition Less than n number of boxes in the system builder. It can help you define the initial risk before a breakout.

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.