Blow Off Top

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Blow Off Top.

A trading pattern showing showing a rapid and substantial rise in price and volume preceding a rapid drop in price (ie, it produces a Λ shape).  These patterns appear in all markets and is a very volatile trading pattern.  It must be approached smartly, as a poorly timed position can translate to huge losses.  Generally, a blow-off top indicates that a security’s price is about to drop.