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Gate.io AMA : V-shaped inverted and V-shaped reversal
11 March 10:38
Today let's study more about K line pattern shape.
Definition:
V-shaped inversion (V-shaped bottom)
A V-shaped reversal means that the currency price suddenly stops when it is rapidly falling, and then rapidly rises up with the cooperation of the trading volume. Because the time of V-shaped reversal from falling to rising is very short, generally within two or three trading days, some even reverse on the same day, the trend is very similar to the English letter "V", so it is called V-shaped reversal. There are some V-shaped reversal patterns, which are short-lived consolidation areas during the up or down phase.
As shown in the following picture :
A V-shaped reversal is a reversal technical pattern, but most of the reversals are medium-term trends, and there are very few short-term and long-term trends that end in a V-shaped reversal.
Technical characteristics of V-shaped inversion
In the process of falling, the falling speed is very fast, and the falling angle is very steep.
The bottom is very sharp. Generally, it quickly turns from falling to rising within two or three trading days, and some are reversed in a single day.
At the time of reversal, the trading volume increased significantly compared with the previous falling stage. The trading volume in the rising phase will be enlarged synchronously with the price rise.
Some V-shaped reversal patterns will have a short-term consolidation area during the up or down phase
The technical meaning of V-shaped inversion
When the V-shaped reversal volume stops falling and starts to rise, it is a buy signal.
Example of BTC real order
In the 6-8BTC market, after a period of decline, the heavy volume closed out the big positive line, and then the currency price started a V-shaped rebound, rising from $31,000 to $38,000, with a cumulative increase of 23%.
2. Inverted V-shaped inversion
Definition:
An Inverted V has the same pattern as a V, but in the opposite direction and technical meaning. The currency price has continued to rise continuously. In the end, the price of the currency suddenly stopped the upward momentum, and on the same day, a heavy-volume from the daily limit to the lower limit was closed at the top, reversing the upward trend. The price then fell almost at the same rate as when it rose, forming an inverted V shape. There are some inverted Vs that have a short-term consolidation area during the up or down phase.
Technical characteristics of inverted V-shaped inversion
1. Appears in the rising process, the rising speed is very fast, and the rising angle is very steep.
2. The top is very sharp, usually from rising to falling within two or three trading days, and even a single-day reversal.
3. At the time of reversal, the trading volume will generally be enlarged, but the trading volume in the falling stage has no special technical significance.
4. There are some inverted V-shaped reversal patterns, and there will be a short-term consolidation area in the rising or falling stage.
Disclaimer:
This article is for reference only.
Such information provided by Gate.io does not constitute any investment advice and is not responsible for any of your investments.
Regarding technical analysis, market judgment, trading skills, trader sharing, etc., may involve potential risks, investment variables and uncertainties.
This article does not provide or imply any opportunity to guarantee profits.
Definition:
V-shaped inversion (V-shaped bottom)
A V-shaped reversal means that the currency price suddenly stops when it is rapidly falling, and then rapidly rises up with the cooperation of the trading volume. Because the time of V-shaped reversal from falling to rising is very short, generally within two or three trading days, some even reverse on the same day, the trend is very similar to the English letter "V", so it is called V-shaped reversal. There are some V-shaped reversal patterns, which are short-lived consolidation areas during the up or down phase.
As shown in the following picture :
A V-shaped reversal is a reversal technical pattern, but most of the reversals are medium-term trends, and there are very few short-term and long-term trends that end in a V-shaped reversal.
Technical characteristics of V-shaped inversion
In the process of falling, the falling speed is very fast, and the falling angle is very steep.
The bottom is very sharp. Generally, it quickly turns from falling to rising within two or three trading days, and some are reversed in a single day.
At the time of reversal, the trading volume increased significantly compared with the previous falling stage. The trading volume in the rising phase will be enlarged synchronously with the price rise.
Some V-shaped reversal patterns will have a short-term consolidation area during the up or down phase
The technical meaning of V-shaped inversion
When the V-shaped reversal volume stops falling and starts to rise, it is a buy signal.
Example of BTC real order
In the 6-8BTC market, after a period of decline, the heavy volume closed out the big positive line, and then the currency price started a V-shaped rebound, rising from $31,000 to $38,000, with a cumulative increase of 23%.
2. Inverted V-shaped inversion
Definition:
An Inverted V has the same pattern as a V, but in the opposite direction and technical meaning. The currency price has continued to rise continuously. In the end, the price of the currency suddenly stopped the upward momentum, and on the same day, a heavy-volume from the daily limit to the lower limit was closed at the top, reversing the upward trend. The price then fell almost at the same rate as when it rose, forming an inverted V shape. There are some inverted Vs that have a short-term consolidation area during the up or down phase.
Technical characteristics of inverted V-shaped inversion
1. Appears in the rising process, the rising speed is very fast, and the rising angle is very steep.
2. The top is very sharp, usually from rising to falling within two or three trading days, and even a single-day reversal.
3. At the time of reversal, the trading volume will generally be enlarged, but the trading volume in the falling stage has no special technical significance.
4. There are some inverted V-shaped reversal patterns, and there will be a short-term consolidation area in the rising or falling stage.
Disclaimer:
This article is for reference only.
Such information provided by Gate.io does not constitute any investment advice and is not responsible for any of your investments.
Regarding technical analysis, market judgment, trading skills, trader sharing, etc., may involve potential risks, investment variables and uncertainties.
This article does not provide or imply any opportunity to guarantee profits.
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