[bloh-awf, -of] 
| 1. | a current of escaping surplus steam, water, etc.: The safety valve released a violent blowoff from the furnace. |
| 2. | a device that permits and channels such a current. |
| 3. | Slang. a person who brags or boasts; a blow-hard. |
| 4. | a temporary, sudden surge, as in prices: The Federal Reserve Board's credit tightening could cause a blowoff in interest rates. |
| blow·off (blō'ôf', -ŏf') n.
|
Blowoff
A term in technical analysis that refers to a sharp price increase that comes after a long period of price appreciation, and is followed by a fall in the price. A blowoff is seen as a rally's last breath and is a highly bearish sign.
Investopedia Commentary
This large and dramatic price movement is generally seen at the peak of a market or stock. The idea behind the bearishness of a blowoff is that it signals the activity of the most irrational and overly exuberant market participants, who, wanting to take part in the rally, momentarily push up the already-overvalued stock.
Related Links
The Madness Of Crowds
Introduction To Technical Analysis
See also: Blow-Off Top, Market Sentiment, Panic Buying, Panic Selling, Technical Analysis, Trend
Also spelled: blow off