V-top/V-bottom
By LuxAlgoMar 21, 2026
V-top/V-bottom trades the spike reversal by its only real-time evidence — exhaustion at the extreme — not a shape that exists only in hindsight. When an accelerating final leg's extreme bar prints climax evidence — a volume spike, an unusually wide bar or a gap that fails on the spot — a candidate tip registers, and the V-top and V-bottom confirms only if the return leg retraces it at comparable speed.
How to Trade the V-top/V-bottom?
- Climax marker: exhaustion at the extreme of an accelerating leg — the real-time signal; honest stop beyond the marked bar, both sides alerted.
- Confirmation: the recovery hits the retrace target inside the time budget — V shape, label and confirmed alerts print.
- First pullback: the first pause resolving back in the reversal's direction prints a circle — the ride-the-recovery entry, alerted.
- Invalidation: price taking out the spike extreme within the reference window kills the pattern; alerted.
V-top/V-bottom Settings
- Leg Window (bars) (default 20), Minimum Leg Duration (bars) (default 4), Minimum Leg Travel (×ATR) (default 3.0), Minimum Leg Speed (ATR/bar) (default 0.4), Require Accelerating Leg (on), ATR Length (default 14): the climactic-leg gate.
- Minimum Climax Evidence (default 1), Volume Average Length (default 20), Volume Spike (×Average) (default 2.0), Wide Range Bar (×ATR) (default 2.0): tip-bar signatures; Require Tip Reversal Event (on) demands a discrete reversal on top.
- Recovery Retrace (%) (default 80) and Maximum Recovery Time (×Leg Bars) (default 1.5): the speed-matched confirmation.
- Reference Extension (bars) (default 100): lifetime of the reference levels.
- Display: Show V Shape, Show Pattern Labels, Show Climax Markers, Show Pullback Signals, Show Reference Levels (all on).
Frequently Asked Questions
How is a V-bottom different from a double bottom?
A Double Bottom Base builds structure — a second test and a neckline to trade against. The V skips that, so this build leans on exhaustion plus recovery speed and deliberately drops candidates that stall into structure-building — a different pattern.
Why did my candidate vanish without confirming?
Price took out the spike extreme, the tip reversal event failed to appear on the next bar, or the recovery missed its deadline. The time limit is the point — a slow retrace is not a V.
Are the signals real-time?
The climax marker prints on the tip bar itself. The V label cannot, since the pattern is defined by its recovery — trade earlier off the climax with the spike extreme as the stop, or later off the first pullback.
The Library is free. Quant makes it yours.
Pull any concept or indicator into Quant: rebuild it, retune it, or turn it into a backtested strategy of your own.
