Top

AAA

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 Articles
  1. Technical Indicators

    How to identify the ascending tops of a security or indicator?

    Discover how to recognize an ascending top pattern on a price chart, and learn why many traders consider ascending tops to be a very bullish indicator.
  2. Trading Strategies

    3 Key Signs Of A Market Top

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

    Trading Double Tops And Double Bottoms

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

    Introduction To Swing Charting

    Discover why traders use swing charts, how they construct them and how they use them.
  5. Active Trading Fundamentals

    A Look At Exit Strategies

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

    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.
  7. Forex Education

    "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.
  8. Forex Education

    Anticipate Trends To Find Profits

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

    Tales From The Trenches: Volume Confirmed Broadening Pattern

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

    What are the best technical indicators that complement the Relative Vigor Index (RVI)?

    Discover some of the best technical indicators that traders and analysts can employ to supplement the use of the relative vigor index (RVI).

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center