Follow-Through Day (FTD) is a day on a chart when the market, after an initial attempt to rise, suddenly strengthens: the index moves significantly higher and does so on increased volume.
Such charts usually show three key elements:
- there was a prior decline followed by a rebound attempt
- then a strong up day appears
- trading volume is higher than in previous days
In simple terms, this is the moment when “easy money” dries up and large institutional players enter the game. That is why an FTD is considered one of the first confirmations that the market may be transitioning from a bounce into a genuine uptrend.
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