V-Top (Spike Reversal)
Definition
A sharp, nearly symmetrical spike up and collapse — reversal without warning.
Psychology
Straight up, straight down. Fast and brutal, with no time to prepare.
Real-life analogy
💡 Touching a hot stove — one instant at the peak, then a fast pull-back.
Expected direction
down
Entry / Stop / Target
Entry: Rarely tradable at the turn; consider only after a lower high forms. · Stop: Above the spike high. · Target: Prior support zones on the way down.
Historical behaviour
Frequent in news-driven blow-offs.
Illustrative success rate
Hard to anticipate · Low reliability
Common beginner mistakes
- • Trying to catch the exact top
- • No stop on momentum longs
Quick quiz — did you understand?
1. Is the V-Top (Spike Reversal) generally considered bullish, bearish, or neutral?
2. After a confirmed V-Top (Spike Reversal), the expected direction is usually:
3. Which is a common beginner mistake with the V-Top (Spike Reversal)?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.