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Definition

Changes in the direction of market sentiment from bullish to bearish represent points or periods at which the sentiment has shifted from positive to negative. Usually this takes place over a period of time as the consensus gradually shifts among investors interested in the share. Sometimes, however, sentiment is pushed sharply, often by government intervention of some kind, from being bullish to being bearish. This is known as a V-Top. Consider the chart of the rand at the time of President Zuma's midnight recall of Pravin Gordhan as Minister of Finance in April 2017:
<figure class="container-fluid"><img class="img-responsive" style="display: block; margin: 0 auto; max-width: 100%;" src="/onlinecourse/img/glossary/V-Top-Formation.png" alt="v-top-formation" />
<figcaption style="text-align: center;">Source: www.x-rates.com</figcaption>
</figure>
You can see here that the rand had been in a strengthening trend and this suddenly and abruptly reversed on the news of the cabinet re-shuffle.

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