Bottom

AAA

DEFINITION of 'Bottom'

The lowest point or price reached by a financial security, commodity, index or economic cycle in a given time period. A specific time span is usually used to determine a bottom - most commonly, 52 weeks - but that timeframe could stretch over years, or remain intraday.

INVESTOPEDIA EXPLAINS 'Bottom'

If a stock has "bottomed out", it means it might have reached its low point and could be in the early stages of an upward trend. Investors usually see a bottom as an opportunity to purchase securities when they are potentially underpriced.


The bottom is used in technical analysis by defining the lowest level of support when charting a stock, commodity, index or economic cycle.




RELATED TERMS
  1. Bottom Fishing

    Investing in stocks that are cheap because of a problem with ...
  2. Double Top And Bottom

    Chart patterns in which the quote for the underlying investment ...
  3. Capitulation

    When investors give up any previous gains in stock price by selling ...
  4. Bear Market

    A market condition in which the prices of securities are falling, ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier ...
  6. Floor

    The lowest acceptable limit as restricted by controlling parties. ...
Related Articles
  1. Spotting A Market Bottom
    Bonds & Fixed Income

    Spotting A Market Bottom

  2. The Seven-Day Extension Fade
    Forex Education

    The Seven-Day Extension Fade

  3. Forex Education

    "Do The Right Thing" For Trade Breakouts

  4. 3 Ways To Tell If Your Stock Has Bottomed
    Economics

    3 Ways To Tell If Your Stock Has Bottomed

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center