Follow Through Day

The Follow Through Day can help to identify a new uptrend after a market correction. It occurs if a major index such as the SPX or NDX closes significantly above the previous day on increased volume and after an attempted rally. An attempted rally starts after a market downtrend if the major index closes with a gain and it stays alive as long as the low of the first day will not undercut. The first day of this rally can be defined by the day which marks the low of the last down move of the index if the close is closer to the high than to the low of this day. Otherwise the day after this low marks the first day. The most powerful Follow Through Days often happen between day 4 and day 7. It should be confirmed by additional gains on strong volume the days after and by breakouts of the top leading growth stocks.

Release Notes:

new parameter Local Low Reference High for defining the time range which defines the reference high for the local low