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.

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  1. Ascending Tops

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  2. Blow-Off Top

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  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

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  3. How effective is creating trade entries after spotting a Tri-Star pattern?

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  4. How important are descending tops for a trading strategy?

    The descending tops pattern is one of the most commonly occurring chart formations in technical analysis. In trading terminology, ... Read Full Answer >>
  5. What are the most popular forms of technical analysis?

    The most popular forms of technical analysis are simple moving averages, support and resistance, trend lines and momentum-based ... Read Full Answer >>
  6. What is the difference between technical analysis and fundamental analysis?

    Fundamental analysis and technical analysis are distinct methods used to research and evaluate securities. Fundamental analysis ... Read Full Answer >>
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