Blow-Off Top

Filed Under » , ,
Dictionary Says

Definition of 'Blow-Off Top'

A chart pattern that indicates a steep and rapid increase in a security's price and trading volume followed by a steep and rapid drop in price and volume. The rapid changes indicated by a blow-off top, also called a blow-off move or exhaustion move, can be the result of actual news or pure speculation.

Blow-Off Top
Investopedia Says

Investopedia explains 'Blow-Off Top'

A blow-off top usually indicates that a security's price is about to fall, while a blow-off bottom usually indicates that a security's price is about to rise. A security can enter a blow-off period during which its value remains inflated for weeks or months. Day traders who want to try to profit from blow-off periods, while limiting their losses from the price drops that inevitably follow a blow-off top, can use trailing stop techniques. Day traders also use blow-off tops to identify potential gap-n-go trades.

Articles Of Interest

  1.

    The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.

  2. Where's The Market Headed Now?

    Whether up, down or sideways, learn about some of the factors that drive stock market moves.

  3. How To Trade The Head And Shoulders Pattern

    The head-and-shoulders chart pattern is a popular and easy-to-spot pattern - once a trader is aware of what they are watching for.

  4. Introduction To Technical Analysis Price Patterns

    To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form.

  5. An Introduction To The Relative Strength Index

    Learn the difference between relative strength and the relative strength index, a frequently used technical analysis oscillator.

  6. Momentum Indicates Stock Price Strength

    Momentum can be used with other tools to be an effective buy/sell indicator.

  7. Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.

  8. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.

  9. When To Short A Stock

    Learn how to make money off failing shares.

  10. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center