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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