Blow-off top

(redirected from Blowoff 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 ?
Given the parabolic ramp in the biotechs, this looks like a blowoff top for the sector -- there's just too much bullishness and too many weak hands in these stocks.
Interviewed on CNBC-TV in early December, Crawford forecast sharply higher prices into a spectacular BLOWOFF TOP in Mid-February.