Ascending Tops

Ascending tops is a trend of rising high points in a stock's or commodity's or index's trading range over time. In other words, if, over time, the top of each trading range is higher than the one previous, then the security, commodity or index is said to have ascending tops. Ascending tops are most clearly distinguishable by chart analysis. Ascending tops can indicate a rising market and are often considered a bullish pattern. Ascending tops can be found on daily, weekly, monthly or yearly charts. While ascending tops can be a bullish indicator, investors should be aware that ascending tops can change direction without warning and that ascending tops should not be relied on as a sole means of market analysis. The opposite of ascending tops is descending tops.