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October 22, 2026FrançaisEspañol

V bottom and V top: what they are, and how to test them

A V bottom is a sharp drop followed by an equally sharp recovery: within a few bars, price comes all the way back to where the drop started. The V top is the mirror image. Here is the exact rule QuantLogic uses.

Where the drop beganV complete
The level the idea readsThe bar where the idea firesA drawn example, not market data.

What it is

There is no pause at the bottom, unlike a double bottom: the turn is a single low.

The V is complete when price closes back at the level where the drop began.

The exact rule QuantLogic uses

V bottom completing, on one-minute bars. The V top is the mirror image.

  1. Within 15 bars, price fell from a high to a low by at least half the average daily range (ATR).
  2. That low is still the lowest point since the high.
  3. Within 15 bars of the low, this bar is the first close at or above the high where the drop began.

When is it known? Known when the bar that closes back at the starting level closes. The average daily range is known before the open.

Versions you can build

  • V bottom completing. A fast drop, fully taken back.
  • V top completing. A fast rise, fully given back.

What to look at around it

In QuantLogic, every time the idea happened is laid out with the data points around it, so you can see where it held and where it didn't:

Time of day and sessionEconomic calendar and newsVWAP distanceGamma regime, flip and wallsYesterday's value area and pivotsVolatilityNQ vs ES since the openUp or down on the day

Traps when you test it

  • Spotting the V at the low. At the low nobody knows it will be a V; it only counts once price is back at the start.
  • Forgetting the size. The drop must be at least half the day's average range.
  • Testing only V bottoms. Check V tops too.

Build it and test it yourself

Open V bottom completing in Build with QuantLogic. See every time it happened on NQ, ES, Gold or Crude since September 2025, check the long and the short side, add your own filters and run the luck test.

Nothing is proven until it holds live. We give no trading signals and no advice, we never hold your money or your accounts, and we never trade for you.

Questions

How fast does the V have to be?
The drop within 15 bars, and the recovery within 15 bars of the low.
What is the difference with a double bottom?
A double bottom tests the low twice. A V turns at one low and goes straight back.

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Educational content, not investment advice. Futures trading involves substantial risk of loss. See the risk disclosure.