How to use the bottom-fishing pattern - V-shaped reversal
1. The advanced subject of Futures Trading, Gate learn, aims to help users to build a framework system of technical analysis, including candlesticks patterns fundamentals, technical patterns, averages and trendlines, and the application of technical indicators. 2. In this issue, we will explain the application of the V-shaped reversal pattern regarding its concept, characteristics, BTC application, and relevant precautions.
I. What is V-shaped reversal pattern?
V-shaped reversal refers to a sharp market move downwards and followed by a sharp movement upwards with the increasing volume. Since the V reversal comes quite suddenly, hence it forms a “V” shape, and called V-shaped reversal.
Some V-shaped reversal patterns sees some slight fluctuations of price in the downward or upward trend as shown in the following chart:
II. How to identify V-shaped reversal?
It appears in a downward trend, with a very quick downtrend and steep angle.
The bottom is very sharp and reverses sharply in a very short time.
When it reverse, the volume will significantly increase compared to the downtrend. Volume increases in accordance with the rising prices in the upward trend.
Some V-shaped reversal pattern will see small adjustment in the downward and upward trend.
III. The technical meaning of the V-shaped reversal
The trading volume in V-shaped reversal pattern stopped falling and began to rally, is a buy signal.
V-shaped reversal generally occurs at the end of the downward trend or when meeting sudden bad news.
IV. Application of the V-shaped reversal pattern
V-shaped reversal pattern is a bottoming signal, now we look at the specific buy signal.
- When the trading volume stops decline and rises, it indicates a buy signal. It also accompanied by K-line analysis, the close of solid positive line, and bullish engulfing pattern or other bullish signals.
V. V-shaped reversal pattern Exemplification
The above chart shows a 4-hour chart of the Gate.io futures. Between July 28 and July 30, BTC made two V-shaped reversal patterns. The first fell from $23,000 to a low of $19,000, and then quickly rebounded out of a wave of strong upward market, with the highest rally of $24,000. The rise was as high as 25% or more.
VI. Other situations
In actual trading, in addition to the V-shaped reversal patterns we will also encounter inverted V-shaped pattern as shown in the following chart. Since the two are different in application, traders should distinguish it carefully in real trading.
Summary
V-shaped reversal patterns are not often seen in actual trading, but often appear in very strong bullish secondary markets, where a wave of dips is followed by a rapid bottom-out, thus forming a V-shaped reversal pattern.
For more information on futures trading, please visit the Gate.io futures platform and click to register and start your futures trading journey.
Disclaimer
This is being provided for reference purposes only. The information provided by Gate.io above does not constitute investment advice and bears no responsibility for any investment you may make. The information regarding technical analysis, market judgments, trading tips, and trader sharing may involve potential risks, investment variables, and uncertainties, and this issue does not provide or imply any opportunity for guaranteed returns.
บทเรียนที่ 1:What is the Crypto-Market Technology Analysis
บทเรียนที่ 2:Several Bullish Candlestick Patterns
บทเรียนที่ 3:Several Bearish Candlestick Patterns
บทเรียนที่ 4:How to use the bottom-fishing pattern - head and shoulders bottom
บทเรียนที่ 5:How to use the bearish reversal pattern - head and shoulders top
บทเรียนที่ 6:How to use the bottom-fishing pattern - rounding bottom
บทเรียนที่ 7:How to use the bearish reversal pattern - rounding top
บทเรียนที่ 8:How to use the bottom-fishing pattern - double bottom (W-shape)
บทเรียนที่ 9:How to use the bearish reversal pattern - double top (M-shape)
บทเรียนที่ 10:How to use the bottom-fishing pattern - V-shaped reversal
บทเรียนที่ 11:How to use the continuation pattern - ascending triangle
บทเรียนที่ 12:How to use the continuation pattern - descending triangle
บทเรียนที่ 13:How to use the continuation pattern - other triangle pattern types
บทเรียนที่ 14:How to use the continuation pattern - flag pattern
บทเรียนที่ 15:How to use the continuation pattern - wedge pattern
บทเรียนที่ 16:How to use the continuation pattern - rectangle pattern
บทเรียนที่ 17:Mater technical analysis-Methodology
How to use the bottom-fishing pattern - V-shaped reversal
1. The advanced subject of Futures Trading, Gate learn, aims to help users to build a framework system of technical analysis, including candlesticks patterns fundamentals, technical patterns, averages and trendlines, and the application of technical indicators. 2. In this issue, we will explain the application of the V-shaped reversal pattern regarding its concept, characteristics, BTC application, and relevant precautions.
I. What is V-shaped reversal pattern?
V-shaped reversal refers to a sharp market move downwards and followed by a sharp movement upwards with the increasing volume. Since the V reversal comes quite suddenly, hence it forms a “V” shape, and called V-shaped reversal.
Some V-shaped reversal patterns sees some slight fluctuations of price in the downward or upward trend as shown in the following chart:
II. How to identify V-shaped reversal?
It appears in a downward trend, with a very quick downtrend and steep angle.
The bottom is very sharp and reverses sharply in a very short time.
When it reverse, the volume will significantly increase compared to the downtrend. Volume increases in accordance with the rising prices in the upward trend.
Some V-shaped reversal pattern will see small adjustment in the downward and upward trend.
III. The technical meaning of the V-shaped reversal
The trading volume in V-shaped reversal pattern stopped falling and began to rally, is a buy signal.
V-shaped reversal generally occurs at the end of the downward trend or when meeting sudden bad news.
IV. Application of the V-shaped reversal pattern
V-shaped reversal pattern is a bottoming signal, now we look at the specific buy signal.
- When the trading volume stops decline and rises, it indicates a buy signal. It also accompanied by K-line analysis, the close of solid positive line, and bullish engulfing pattern or other bullish signals.
V. V-shaped reversal pattern Exemplification
The above chart shows a 4-hour chart of the Gate.io futures. Between July 28 and July 30, BTC made two V-shaped reversal patterns. The first fell from $23,000 to a low of $19,000, and then quickly rebounded out of a wave of strong upward market, with the highest rally of $24,000. The rise was as high as 25% or more.
VI. Other situations
In actual trading, in addition to the V-shaped reversal patterns we will also encounter inverted V-shaped pattern as shown in the following chart. Since the two are different in application, traders should distinguish it carefully in real trading.
Summary
V-shaped reversal patterns are not often seen in actual trading, but often appear in very strong bullish secondary markets, where a wave of dips is followed by a rapid bottom-out, thus forming a V-shaped reversal pattern.
For more information on futures trading, please visit the Gate.io futures platform and click to register and start your futures trading journey.
Disclaimer
This is being provided for reference purposes only. The information provided by Gate.io above does not constitute investment advice and bears no responsibility for any investment you may make. The information regarding technical analysis, market judgments, trading tips, and trader sharing may involve potential risks, investment variables, and uncertainties, and this issue does not provide or imply any opportunity for guaranteed returns.