# Topping Signal

## 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.&#x20;

## 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.&#x20;

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.&#x20;

![Example of a successful confirmed topping bar that signaled the -80% crash in Bitcoin to $3k](https://4157379069-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdiiZMqgqmISEhrMWei%2F-Mgkf36UYBxxybQ2XSSq%2F-MgpzwSEWks6Zd18CbJE%2Fdocs%20guide%20tops1.png?alt=media\&token=7f13ab38-b081-4095-bba2-6f22acce64b9)

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.](https://4157379069-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdiiZMqgqmISEhrMWei%2F-Mgq09BTUEPzV27QAwqZ%2F-Mgq2W7drM1OcvUiew-k%2Fdoc%20guide%20top%20pic.png?alt=media\&token=12985648-2d79-465d-ac07-ef8ee6c48320)

## 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.

{% hint style="info" %}
Note that our Confirmation Suite is included in our Alpha Bundle. The Confirmation Suite includes, Alpha Thrust, Alpha RSI, & our Support/Resistance indicator.
{% endhint %}

{% hint style="danger" %}
If tops are not confirmed by the following bar they are considered invalidated
{% endhint %}
