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.
V Bottom
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 V Bottom.