Ascending Tops

Filed Under » , , , ,
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.

Articles Of Interest

  1.

    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.

  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. 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.

  4. 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.

  5. 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.

  6. Four-Week Rule Boosts Winning Trades

    Acquaint yourself with an indicator that played a role in the early development of technical analysis.

  7. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.

  8. When To Short A Stock

    Learn how to make money off failing shares.

  9. A Top-Down Approach To Investing

    Use a global view to determine which stocks belong in your portfolio.

  10. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center