Below is a slider quiz to test your ability to identify extended V-tops and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
1 / 7
Shown in red is an extended V-top chart pattern. Look for price to make a straight-line run upward with few or no pauses (A to B). Price at the top of the inverted V will
form a one-day reversal, island reversal, or tail, usually on heavy volume. Price on the right side (C) must retrace at least 38.2% of the left side. Look for price to pause on the way down (D).
Often this pause will look like a flag, sloping slightly upward. The pause is the extension. The duration of the pattern is from 3 weeks to 3 months. A close below C is the breakout. On
the next slide, let's try to find some extended V-tops.
2 / 7
Find as many extended V-tops as you can. For help, click here. The next slide shows the pattern(s), if any.
3 / 7
I show the extended V-top in red. Shall we try again? Next slide...
4 / 7
Find as many extended V-tops as you can and one regular V-top. The next slide shows the pattern(s), if any.
5 / 7
The correct extended V-top is pattern B. Pattern A is a normal V-top. Let's try trading them in the next slide.
6 / 7
Shown in red is the extended V-top. It has a downward breakout at A. How far down does price drop? Does it reach line B, C, D, E, or none of the above? Answer on the next slide.