a "follow-through day" | IBD

 In the context of Investor's Business Daily (IBD), a "follow-through day" is a significant indicator of a potential uptrend, occurring on the 4th day or later of a rally attempt, characterized by a strong price gain (at least 1.25%) and higher volume than the previous day. 

Here's a more detailed explanation:

• What it is:

  A follow-through day (FTD) is a specific type of market signal that IBD uses to identify potential uptrends after a stock market correction or bear market. 
• Timing:

  It typically occurs on the 4th day or later of a rally attempt, after a major index (like the Nasdaq or S&P 500) has been trying to rally higher from a recent low. 
Criteria:
Price Gain: A significant price gain of at least 1.25% (or more) on one of the major indexes. 
Volume Increase: The trading volume on the follow-through day must be higher than the previous day's volume. 
Significance:
A follow-through day can indicate that a stock market correction has ended and a new uptrend may be taking hold. 
Not a Guarantee:
While a follow-through day is a positive signal, it's not a guarantee of a sustained uptrend. The market can still drop again, and it's important to monitor the market and adjust your strategy accordingly. 
IBD's Perspective:
IBD emphasizes the importance of identifying stocks that break out in volume on a follow-through day, as these stocks may be poised for significant gains.