STOCKS VERTICAL RECOVERY FROM DAY LOW (V SHAPE RECOVERY) 3

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The term "vertical recovery from day low" or "V-shaped recovery" in the context of stocks refers to a specific price pattern where a stock's price experiences a rapid decline from its daily low point, followed by an equally swift and substantial upward movement, forming a V-shaped pattern on a price chart. Here are three key aspects of this phenomenon:

Rapid Decline (Downward Leg):

  • Description: In the initial phase of the pattern, the stock experiences a sharp and quick decline in its price, often reaching the day's lowest point.

Swift Recovery (Upward Leg):

  • Description: Following the sharp decline, the stock undergoes a rapid and significant recovery, forming the ascending arm of the V-shaped pattern.

V-Shaped Pattern:

  • Description: When plotted on a price chart, the combination of the sharp decline and rapid recovery creates a V-shaped pattern.

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