V-Shape Recovery

A steep drop in price action followed by a quick recovery within a limited time period. When displayed on a chart, price activity looks like a "V". For those studying macroeconomics, in particular, a V-shaped recovery depicts the layout of a chart that indicates a period of recessions and a subsequent recoveries. Following a steep decrease in these measurements, a V-shaped recovery entails a fast increase in price, back to or near its upper levels prior to the decline.