A chart pattern reflecting quick price reversal suggesting a strong move against the prevalent trend
The V-formation is one of the hardest ones to analyze in real time. This is primarily due to their short duration and sudden turn around. In all other respects the V-formations are similar to the Rounded formations. The V-formations’ sharp turn around is often characterized by a single sharp spike bottom, and offers a bullish signal. Of course the same logic applies when you flip the V, which creates a formation that offers a bearish signal.
