Reversal · Bullish · Medium reliability
V-Bottom Pattern Explained
A sharp sell-off turns into an equally fast recovery.
What it looks like
A sharp sell-off followed by a rapid recovery — often marks panic selling and a swift reversal.
Works best with trend and volume context.
Visual example
Illustrative geometry on ChartNox charts — not a live trade signal.
How to identify it
- Find a steep decline that accelerates into a low.
- Check that the rebound from the low is about as fast as the fall.
- Mark where the sharp drop began. A strong return toward it strengthens the read.
When the read is wrong
Invalid if the rebound fades quickly and price falls back below the low.
Common mistakes
- Calling a bottom during the sell-off. A V-bottom can only be seen after the turn.
- Treating a small bounce as a V-bottom when it recovers only a small part of the drop.
Questions and answers
What causes a V-bottom?
It is often linked to panic selling that ends suddenly, followed by fast buying.
How is a V-bottom different from a double bottom?
A V-bottom turns once, with no second test of the low. A double bottom tests the same support twice.
Ask ChartNox AI about V-Bottom
Open the tutor with this pattern pre-seeded. Educational coaching only — not a trade recommendation.
- How do I identify a V-Bottom on a chart, step by step?
- What usually invalidates a V-Bottom pattern?
- What mistakes do beginners make with V-Bottom?