As of 12/24/2024
Indus: 43,297 +390.08 +0.9%
Trans: 16,063 +127.24 +0.8%
Utils: 993 +4.93 +0.5%
Nasdaq: 20,031 +266.24 +1.3%
S&P 500: 6,040 +65.97 +1.1%
|
YTD
+14.9%
+1.0%
+12.7%
+33.4%
+26.6%
|
 44,200 or 41,750 by 01/01/202516,700 or 15,500 by 01/15/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/24/2024
Indus: 43,297 +390.08 +0.9%
Trans: 16,063 +127.24 +0.8%
Utils: 993 +4.93 +0.5%
Nasdaq: 20,031 +266.24 +1.3%
S&P 500: 6,040 +65.97 +1.1%
|
YTD
+14.9%
+1.0%
+12.7%
+33.4%
+26.6%
| |
|
44,200 or 41,750 by 01/01/202516,700 or 15,500 by 01/15/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
My book,
Encyclopedia of Chart Patterns Second Edition
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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
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