Definition
A V-pattern is a sharp, abrupt reversal in which price falls steeply, turns on a single point, and rises just as steeply — tracing the letter V. An inverted V, sometimes called an A or a spike top, does the reverse at the end of an advance. The defining trait is the absence of a pause: there is little or no sideways consolidation at the turn.
It sits at the opposite end of the spectrum from the rounded pattern. Where a rounded bottom takes months to change the market's direction, a V does it in a moment, often driven by a sudden shock, a news event, or a wave of panic that exhausts itself all at once.
Why it matters
How it works
A V forms when one side of the market is overwhelmingly dominant right up to a single bar, and then control flips almost instantly. There is no period of churning or balance — the move simply ends and reverses. This often happens around a sudden catalyst, or when a sharp, emotionally driven move runs out of participants and snaps back.
The V's speed is both its signature and its difficulty: there is no pattern boundary to wait for and no clean confirmation point, so it offers a vivid picture of market behavior but a hard-to-trade signal.