Tower Top - Bearish Reversal Candlestick Pattern

Tower Top Definition

A tower top occurs at high price levels after an extensive rally. At some point in the upward move, the security will begin to flatten out and develop dojis. Then one or more large black candles will emerge. The formation of long candles resembles a tower structure, hence the name tower top. The key indicator for this candlestick formation is large black candles on the way down. Some of the Japanese refer to the tower top as a turret top. The closest Western chart formation to the tower top is the spike reversal. The formation is useful for longer-term traders since the tower is often finalized late in the move.

Tower Top Charting Example

Tower TopTower Top

 


Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.