V top
A sharp rise followed by an equally sharp fall, so the high is a single narrow point.
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.
- Find a swing high.
- Require a rise of at least 15% in the 10 bars before it.
- Require a fall of at least 15% in the 10 bars after it.
- 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
| Label | What it means |
|---|---|
| Formed | Both sides meet the size rule. |
| Falling | Price is falling from the high. |
| Back below the start | Price 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.