Patterns › Reversal

Post-Collapse Recovery pattern

A post-collapse recovery is a reversal pattern in which a stock that has fallen 35% or more from its high of the past year rebounds, winning back at least 30% of the drop, and holds near the rebound high, signaling a potential turn from a deep downtrend.

Stocks forming it recently ↓
Illustration of the post-collapse recovery chart pattern, marking the bar where our screener signals
Illustration. SIGNAL marks the bar where our screener flags the pattern; Key support and Breakout zone match the levels on every pick.

What does a post-collapse recovery look like?

Our scanner checks it as a setup where all of these hold:

  1. A fall of at least 35% from the stock's high of the past year, with the low 8 to 120 trading days ago.
  2. A rebound that has won back at least 30% of the drop.
  3. Price no more than 18% below the rebound high.
  4. A breakout isn't required, and it can also flag the stock on the day it makes a new rebound high.
  5. Volume isn't required.

How reliable is the post-collapse recovery pattern?

In our most recent backtest (March – September 2026, out-of-sample), 69.8% of the 757 highest-scoring post-collapse recovery setups, out of 21,831 studied, were trading higher two weeks later.

How are entry, stop and target set?

Every pick comes with an entry zone, price targets and a stop. The targets come from how far past post-collapse recovery setups actually moved, not from a textbook projection of the pattern's height. The stop scales with the stock's own average daily range, so a volatile stock gets a wider stop than a quiet one.

How is it different from a rounding bottom?

Both are bottoming patterns, but a post-collapse recovery starts with a fall of at least 35% and a sharp rebound, then pauses below the rebound high, while a rounding bottom is a slow, smooth U-shape.

Rounding Bottom pattern →

Stocks forming a post-collapse recovery recently

HLI Houlihan Lokey Inc - Class A Oct 26, 2026
BIRK Birkenstock Holding Plc Oct 20, 2026
HIMX Himax Technologies Sep 18, 2026

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