Blow-off top

Blow-off top

A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen in charts and used in technical analysis of stock price and market trends.

Blow-Off Top

A sudden, rapid increase in a security's price followed by an equally sudden, rapid decrease. A blow-off top can result in large short-term gains, provided one sells the security at exactly the right moment. Just as likely, however, is the possibility that one will incur a loss by buying at the top price. A blow-off top can result from either sudden news or a rumor. See also: Reversion to the mean.
References in periodicals archive ?
If that was not a blow-off top, we think that earnings reports will keep this market afloat for at least a few more weeks.
New Zealand Dollar / US Dollar Kiwi has gone vertical in what may be a blow-off top.
6640 would negate the blow-off top scenario that I have discussed in recent days and also mean that channel support (since March) has been broken.