Top

What Does Top Mean?
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

Ascending Tops
Blow-Off Top
Bottom
Descending Tops
Head and Shoulders Pattern
Technical Analysis
More Related Terms

Related Links

Trading Double Tops and Double Bottoms - We look at how Bollinger Bands help accurately project entry and exit points for pattern traders.
Introduction to Swing Charting - Discover why traders use swing charts, how they construct them, and how they use them.
A Look at Exit Strategies - Avoid taking premature profits or running losses by setting appropriate exit points.
Anticipation Vs. Prediction - Monitoring your trades in real-time can help you anticipate their outcomes.
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.
Channel Breakouts With The CCI - This "do the right thing" setup will help put you on the right side of a trade.
Tales From The Trenches: Volume Confirmed Broadening Pattern - Find out how to make sense of this tricky - but profitable - formation.
Five Chart Patterns You Need to Know - Learn to maximize profits in up and down markets with this free report from ChartAdvisor.com!

Rate this Term: Your Rating: Overall Rating: Vote Now!