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