Blow-off
Elliott Wave Theory glossary · Rule Of Alternation & Channeling Guidelines
Definition
A rapid, climactic price move—typically in the Wave 5 position— characterised by extreme volume and speculative fervour, followed by a sharp reversal.
Blow-off in plain English
A blow-off is the market's final, frantic sprint — prices rocket upward on huge trading volume as excited buyers pile in, sure they'll miss out if they wait. It usually shows up as the last wave (Wave 5) of a trend, and because it's driven by pure hype rather than real value, it burns out fast and reverses sharply. Picture the last few seconds of a bidding war at an auction: people bid wildly past what the item's worth, then the room goes silent and the frenzy collapses. Spotting a blow-off warns a trader the party may be about to end.
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