As of 04/18/2024
Indus: 37,775 +22.07 +0.1%
Trans: 14,947 -39.62 -0.3%
Utils: 860 +6.95 +0.8%
Nasdaq: 15,602 -81.87 -0.5%
S&P 500: 5,011 -11.09 -0.2%
|
YTD
+0.2%
-6.0%
-2.4%
+3.9%
+5.1%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/18/2024
Indus: 37,775 +22.07 +0.1%
Trans: 14,947 -39.62 -0.3%
Utils: 860 +6.95 +0.8%
Nasdaq: 15,602 -81.87 -0.5%
S&P 500: 5,011 -11.09 -0.2%
|
YTD
+0.2%
-6.0%
-2.4%
+3.9%
+5.1%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
My book,
Encyclopedia of Chart Patterns Second Edition
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
$ $ $
Extended V tops and extended V bottoms are chart patterns that are easy to spot after they have completed. They appear just like their names suggest, V-shaped or inverted V-shaped price patterns on the chart.
| Characteristic | Discussion |
| Uptrend | Look for price to make a straight-line run upward with few or no pauses, often fitting inside a channel (two parallel trendlines). |
| Reversal | Price at the top of the inverted V will form a one-day reversal, island reversal, or tail, usually on heavy volume. |
| Trendline | After the reversal, price pierces an up-sloping trendline drawn along the price lows, confirming the trend change. |
| Downtrend | Price trends down, usually at the mirror angle of the uptrend. If price climbed by 45 degrees, price will tumble following a 45 degree trend. |
| Extension | The extended V top is a variation of the V top. After price reverses at the top, price forms a flag or pennant pattern – a sideways price move that often swings upward against the downward price trend. Once the flag completes, price resumes the decline. |
Trading an extended V top is easier than trading a regular V top. When price breaks out of the flag or pennant in the extended portion of the inverted V, take a position. For downward breakouts, expect price to approach the price level of the start of the inverted V on the left. It may not reach the exact bottom, so be prepared to exit early.
The above figure shows an example of an extended V top chart pattern. Price begins the advance to the summit in early June and peaks near July. A black candle signals a reversal followed by the extension in a small congestion region that slants upward. Once the stock pierces the bottom of this region, price tumbles, approximating the angle at which price climbed to the V top.
Many of the identification guidelines are similar to the extended V top.
| Characteristic | Discussion |
| Downtrend | Look for price to make a straight-line run downward with few or no pauses, often fitting inside a channel. |
| Reversal | Price at the bottom of the V will form a one-day reversal, island reversal, or tail, usually on heavy volume, perhaps gapping upward. |
| Trendline | After the reversal, price pierces a down-sloping trendline drawn along the price tops, confirming the trend change. |
| Uptrend | Price trends up, usually at the mirror angle of the downtrend. If price dropped by 30 degrees, price will rise following a similar angle. |
| Extension | The extended V bottom is a variation on the V bottom. After price reverses at the bottom, price forms a flag or pennant pattern – a sideways price move that often swings downward against the prevailing upward price trend. Once the flag completes, price resumes the rise. |
Trade an extended V bottom once price exits the flag or pennant. Expect price to approach the price level of the left side of the V (where the decline started).
The above figure shows an example of an extended V bottom chart pattern. The decline into the pattern is unusually steep, meaning it cannot last long, and it doesn't. Price rebounds in a V-shape and then levels out, forming the extension. The extension appears on the chart as a descending triangle -- a flat base with down-sloping top. The breakout from this congestion pattern is upward and that means a powerful move up, retracing much of the drop leading into the V bottom.
-- Thomas Bulkowski
Support this site! Clicking any of the books (below) takes you to
Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notice for paid links: "As an Amazon Associate I earn from qualifying purchases."
|
My Stock Market Books
|
My Novels
|
Shin: A device for finding furniture in the dark.
on 
