Ascending Tops

Dictionary Says

Definition of 'Ascending Tops'

This refers to a series of peaks, each peak higher than the previous one on the stock's chart pattern. Ascending tops are created following a previous and subsequent trough. This may look like a mountain range in which each mountain top is higher than the last.

The chart below illustrates a series of four ascending tops.

Ascending Tops

Investopedia Says

Investopedia explains 'Ascending Tops'

For technical analysts this is considered a very bullish indicator. The ascending tops pattern points to a situation where the market has determined that the price of a stock is intrinsically greater than it was during the previous period, when traders sold off the security following a high. The sell-off might be viewed as profit taking, thus explaining the security's subsequent rise to a new high.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Cup and Handle

    A pattern on bar ...
  2. Head And Shoulders Pattern

    A technical ...
  3. Technical Analysis

    A method of ...
  4. Risk

    The chance that ...
  5. Universe Of Securities

    A set of ...
  6. Arithmetic Mean

    A mathematical ...
  7. Fundamental Analysis

    A method of ...
  8. Moving Average - MA

    An indicator ...
  9. Moving Average Chart

    A tool used by ...
  10. Dilution

    A reduction in ...

Articles Of Interest

  1. Four-Week Rule Boosts Winning Trades

    Acquaint yourself with an indicator that played a role in the early development of technical analysis.
  2. Using Volume Rate Of Change To Confirm Trends

    Wise traders rely on indicators that show a trend in volume, because without supportive volume, a price movement has no conviction.
  3. Introduction to Types of Trading: Technical Traders

    Learn about the different traders and explore in detail the broader approach that looks to the past to predict the future.
  4. Trade On Support For The Best Exit Strategy

    Find your sound exit strategy based on support and resistance levels, while understanding the psychology behind them.
  5. How To Build A Trading Indicator

    Wondering how people like Elliott and Gann built their famous trading tools? Learn the basics of constructing an indicator.
  6. How To Interpret Technical Analysis Price Patterns: Triple Tops And Bottoms

    Triple and double tops and bottoms may be tough to spot, but once you learn them, they can be powerful patterns.
  7. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  8. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  9. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  10. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center