DEFINITION of 'Blowoff'

A term in technical analysis that refers to a sharp price increase that comes after a long period of price appreciation, and is followed by a fall in the price. A blowoff is seen as a rally's last breath and is a highly bearish sign.


This large and dramatic price movement is generally seen at the peak of a market or stock. The idea behind the bearishness of a blowoff is that it signals the activity of the most irrational and overly exuberant market participants, who, wanting to take part in the rally, momentarily push up the already-overvalued stock.

  1. Trend

    The general direction of a market or of the price of an asset. ...
  2. Blow-Off Top

    A chart pattern that indicates a steep and rapid increase in ...
  3. Market Sentiment

    The overall attitude of investors toward a particular security ...
  4. Panic Selling

    Wide-scale selling of an investment, causing a sharp decline ...
  5. Panic Buying

    A type of behavior marked by a rapid increase in purchase volume ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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