V Bottom

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 V Bottom.

A bullish pattern created by a sharp V-shaped trough.  The trough is created by investor irrationality causing a sudden price fall and a subsequent reversal of the short-term bearish movement.  Thus, a V Bottom often occurs in a bearish trend and announces a trend reversal.  The lowest point of the V is frequently formed by a single candlestick (often with a large low wick, indicating the desire for reversal).  A sign of high volatility, a V bottom regularly appears after an announcement that takes investors by surprise.