Topping Signal

Identify local tops with high probability

Potential Topping Signal

Potential Local Tops are signaled by an orange bars with an orange "T" labeled above it. These show high probability for a local top after an extended move to the upside. Many times these temporary local tops can and do turn into larger macro tops on a larger scale. So they are very important to note and be aware of. Many tops clustered together can mean consolidation. The consolidation often means that downside is coming soon.

Confirmation

Just like with the Reversals we look for those same confirmation rules to confirm topping setups. Since tops are a bearish signal the next after the topping bar needs to close BELOW the bottom wick of the topping bar in order to be confirmed. Below are some examples of topping bars that signaled a large downward move shortly after being confirmed.

In this first example you can see the first two topping signals were NOT CONFIRMED, but the last one was, and so we had a crash follow. It was also the infamous crash that took us down to $3k in 2020! This topping bar signaled an -80% crash you could have avoided. This one would have saved a lot of people that ended up never returning to Bitcoin again. It is a great reason to set alerts on these tops on the daily chart to avoid this happening.

Example of a successful confirmed topping bar that signaled the -80% crash in Bitcoin to $3k

The second picture is of our topping signal & red bars calling the 2021 Bitcoin top & subsequent crash! Again the Alpha Trend could have saved a lot of people that ended up never coming back in the market after such a loss. Alpha Trend is the way.

Alpha Trend signaling the 2021 crypto crash with our two bearish indicators.

Using our Confirmation Suite Indicators

Our Alpha Thrust, & Alpha RSI can be used to confirm Topping signals just like for the Reversal signals & are both located within our Confirmation Suite. We go over examples of these indicator confirmations in our Confirmation Suite category of this Alpha Docs Guide.

Note that our Confirmation Suite is included in our Alpha Bundle. The Confirmation Suite includes, Alpha Thrust, Alpha RSI, & our Support/Resistance indicator.

If tops are not confirmed by the following bar they are considered invalidated