Term: TOP

The highest point on a share price or other graph over a defined period. Obviously, as a private investor, you will be trying everything you know to determine the moment at which a share’s price reaches the top of its cycle. Your objective should be to sell out of the share well before it reaches that top and so take the low-risk portion of the cycle. The further up a share goes the closer it is to its top and the greater the risk. Consider the chart below:

Top of a Trend

 

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