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Definition of 'Top'

The highest price level reached by a security, index of securities, commodity or economic cycle in a given time period, followed by at least a short-term decline.
Investopedia Says

Investopedia explains 'Top'

Security prices and economic cycles commonly move in trends, following an upward trend for a time before reversing and moving downwards for a period. The point at which a trend reversal switches from an upward to a downward one is referred to as the top. Short- to medium-term traders like to sell at or near the top before the downward trend begins.

Articles Of Interest

  1.

    Trading Double Tops And Double Bottoms

    We look at how Bollinger Bands help accurately project entry and exit points for pattern traders.

  2. Introduction To Swing Charting

    Discover why traders use swing charts, how they construct them and how they use them.

  3. A Look At Exit Strategies

    Setting appropriate exit points should help you avoid taking premature profits or running losses.

  4. The Seven-Day Extension Fade

    It's possible to pick a top or bottom with no indicator support. We'll show you how this strategy works.

  5. "Do The Right Thing" For Trade Breakouts

    Often in life, the right action is the hardest to take. Discover how to get on the right side of a trend.

  6. 3 Key Signs Of A Market Top

    Learn the best ways to foresee market corrections and how to profit from them.

  7. Tales From The Trenches: Volume Confirmed Broadening Pattern

    Find out how to make sense of this tricky - but profitable - formation.

  8. Anticipate Trends To Find Profits

    Monitoring your trades in real-time can help you anticipate their outcomes.

  9. Market Summary for May 24 2013

    The major U.S. indices moved lower this week, ahead of the long Memorial Day weekend. After reaching all-time highs last week, many traders attributed the sell-off to a combination of profit ...

  10. What Type Of Trader Are You?

    There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use?
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