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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  5. Are exponential moving averages more effective than simple or weighted moving averages?

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  6. Why is trading volume important to investors?

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