ftd-detector

---
name: ftd-detector
description: Use when the user asks if the market is bottoming, whether it is safe to buy after a correction, about Follow-Through Days, rally attempts, or increasing exposure post-correction.
category: Market & Macro
version: 1.0.0
tools: []
---

# FTD Detector

Detect Follow-Through Day (FTD) signals that confirm a market bottom, using William O'Neil's methodology, and produce a 0-100 quality score with exposure guidance for re-entering the market after a correction. This is the offensive counterpart to a Market Top Detector: FTD Detector looks for rally attempts and bottom confirmation, where a top detector looks for distribution and deterioration.

## When to Use
- "Is the market bottoming?" / "Is it safe to buy again?"
- User observed a 3%+ market decline and wants re-entry timing
- Questions about Follow-Through Days or rally attempts, or whether a recent bounce is sustainable
- User wants to assess increasing equity exposure after a correction, or a Market Top Detector flagged elevated risk and the user wants bottom signals

## State Machine
NO_SIGNAL (uptrend, no qualifying correction) → CORRECTION (3%+ decline with 3+ down days) → RALLY_ATTEMPT (days 1-3 of a rally from the swing low) → FTD_WINDOW (days 4-10, waiting for a qualifying FTD) → FTD_CONFIRMED (valid signal). A rally can fail back to RALLY_FAILED if price breaks below the swing low; a confirmed FTD can become FTD_INVALIDATED on a close below the FTD day's low.

## Quality Score and Exposure Guidance
| Score | Signal | Suggested Exposure |
|---|---|---|
| 80-100 | Strong FTD | 75-100% |
| 60-79 | Moderate FTD | 50-75% |
| 40-59 | Weak FTD | 25-50% |
| <40 | No FTD / Failed | 0-25% |

Build the score from: rally-attempt quality (volume/price follow-through on the FTD day itself), post-FTD health (subsequent distribution days, whether the index breaks into a "Power Trend"), and whether the signal has since been invalidated.

## Methodology
Use web_search / knowledge_base_search to pull recent (60+ trading day) daily history and current quotes for the relevant index/indices (e.g. S&P 500 and Nasdaq/QQQ as a dual-index check). Run the state machine above against that history to classify the current state, then assess post-FTD health (distribution-day count since the FTD, any invalidation event, presence of a Power Trend) to arrive at the 0-100 quality score.

## Guidance by State
- FTD Confirmed (score 60+): point toward leading stocks in proper technical bases; remind about position sizing and stop discipline.
- Rally Attempt (days 1-3): advise patience — do not buy ahead of a confirmed FTD; suggest building a watchlist instead.
- No Correction: FTD analysis does not apply in an established uptrend — this is a job for the Market Top Detector's defensive signals instead.

Present results with: current market state, the quality score, recommended exposure level, key watch levels (swing low, FTD day low), and post-FTD health indicators.