V formation


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V formation

A technical chart pattern that follows a letter V form, indicating that the security price has bottomed out, and is now in a bullish trend.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

V-Formation

In technical analysis, a situation in which a security steeply declines in price, and then steeply recovers. A V-formation may be bullish, but many analysts believe that a V-formation is risky because of the possibility that another steep decline could occur. See also: W-type bottom, V-shaped recovery, W-shaped recovery.
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