A V-shaped reversal looks like what it sounds. The chart makes a V. It is a strong pattern that can dramatically increase levels. It is a shape that leaves buyers continually behind the curve because the price keeps blasting higher. The previous sell-off shakes out all the loose holders so nobody is left to sell.
The ideal time to buy is when the moving average turns higher but at that time there is no sign of the V-shaped reversal pattern. This chart shows the price moving effortlessly through resistance from the previous peak, which points to higher levels.
I started writing this piece when Applovin was $123 but never published it. The problem was that I struggled to understand what they do although I suspect this stock could be a monster winner.
