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V-top/V-bottom

By LuxAlgoMar 21, 2026

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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

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