Bullish AFT – Immediate breakout

AFT stands for Anchor Column Follow Through Pattern.

TradePoint and RZone have 4 bullish AFT patterns.

• Bullish AFT
• Bullish Probable AFT
• Immediate AFT – Bullish
• Bullish 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 Immediate 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.

When the double top buy pattern is immediately followed by the anchor column, it shows strong momentum.

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

When you scan for a Bullish AFT pattern, you get a list of stocks that qualify for the immediate 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 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.