Top

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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 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.

RELATED TERMS
  1. Ascending Tops

    This refers to a series of peaks, each peak higher than the previous ...
  2. Blow-Off Top

    A chart pattern that indicates a steep and rapid increase in ...
  3. Bottom

    The lowest point or price reached by a financial security, commodity, ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Descending Tops

    A pattern in charts where each peak in price is lower then the ...
  6. Head And Shoulders Pattern

    A technical analysis term used to describe a chart formation ...
RELATED FAQS
  1. How to identify the ascending tops of a security or indicator?

    In trading terminology, a security experiences a top whenever a new high level has been reached on a price chart and is succeeded ... Read Full Answer >>
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