Trends/Reversal patterns

V top

A sharp rise followed by an equally sharp fall, so the high is a single narrow point.

Reversal patternsBest on 3M, 6M, 1YAlso called spike high, inverted V
V top diagramIllustration of the V top shape. It is a sketch, not real price data.Sharp high
Illustration of the V top shape. It is a sketch, not real price data.

What it shows

A V top has no pause at the high. Price rises quickly, hits a peak, and falls just as quickly. The chart makes an upside-down V.

Our code measures how fast price rose and fell around a swing high.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Find a swing high.
  2. Require a rise of at least 15% in the 10 bars before it.
  3. Require a fall of at least 15% in the 10 bars after it.
  4. Mark the high as the top of the V.

Starting values: Rise before the high 15% in 10 bars; Fall after the high 15% in 10 bars. These are proposed and will be tuned on real price data before launch.

How to read it

  • The red dot is the highest point.
  • Steep sides mean fast moves in each direction.
  • Both sides are of similar length and slope.

Status labels you may see

LabelWhat it means
FormedBoth sides meet the size rule.
FallingPrice is falling from the high.
Back below the startPrice has fallen to where the rise started.

What cancels it

A close above the high cancels the pattern.

What traders check next

  • What caused the rise and the fall.
  • Volume at the high.
  • How long price takes to reach 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 top in the left menu.
  • Switch between 3M, 6M, 1Y to see how the picture changes.
  • Compare with V bottom and Rounding top on the same chart.

Questions

Is a V top common?

It tends to follow sudden events. We do not claim a rate.

How do I tell it from a double top?

A double top has two peaks. 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.