V-shape as market behaviour

27/11/2021 Yorgwarez

Don’t treat this specific setup as formation, this is caused by specific market behaviour. And a lot depends on some specific details in order to make this formation successful. In general schema looks as follows:

Firstly, we need to see clear trend with impulses and corrections. Then at the extreme point (bottom or top) we see sudden and strong impulse to opposite direction to previous trend. Very often in that extreme point where market makes reversal, we also see volume spikes. Key point is to observe whether market accepts new prices. When the price finishes v-shape reversal, I start looking for reversal.

 

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Yorgwarez

Intraday Trader, trading mainly on Dax, S&P500 and Gold. Passionate of new technologies and ex-developer. Currently creating software after hours in order to improve Trading and perform automatic analysis on as big scale as possible. Not trying to predict future, however always having plan and possible scenarios to play.

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