Blow-off top

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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.