V bottom
A sharp fall followed by an equally sharp rise, so the low is a single narrow point.
What it shows
A V bottom has no pause at the low. Price drops quickly, hits a low, and rises just as quickly. The chart makes the letter V.
Our code finds it by measuring how fast price fell and rose around a swing low.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Find a swing low.
- Require a fall of at least 15% in the 10 bars before it.
- Require a rise of at least 15% in the 10 bars after it.
- Mark the low as the bottom of the V.
Starting values: Fall before the low 15% in 10 bars; Rise after the low 15% in 10 bars. These are proposed and will be tuned on real price data before launch.
How to read it
- The teal dot is the lowest point.
- Steep sides mean fast moves in each direction.
- Both sides are of similar length and slope.
Status labels you may see
| Label | What it means |
|---|---|
| Formed | Both sides meet the size rule. |
| Recovering | Price is rising from the low. |
| Back above the start | Price has regained the level where the fall started. |
What cancels it
A close below the low cancels the pattern.
What traders check next
- What caused the drop and the rise.
- Volume at the low.
- How long price takes to regain the starting level.
Limits
- A V looks obvious only after the fact.
- Sharp moves can reverse again.
- The size rule is arbitrary.
Try it in forecastviz
- Open any ticker and choose Reversal patterns → V bottom in the left menu.
- Switch between 3M, 6M, 1Y to see how the picture changes.
- Compare with V top and Rounding bottom on the same chart.
Questions
Is a V bottom common?
It tends to follow sudden events such as news. We do not claim a rate.
How do I tell it from a double bottom?
A double bottom has two lows. A V has one.
Related trends
Further reading
- Edwards and Magee, Technical Analysis of Stock Trends
- Bulkowski, Encyclopedia of Chart Patterns
- Murphy, Technical Analysis of the Financial Markets
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.