Topping Process

What does a topping process look like? There’s a significant high. After reaching a significant high, the market uses to have three options.

A: The market turns immediately after reaching the high falling severely in the further course without testing the high again, rudimentarily at least.

B: After the high the market is consolidating/retracing for one to three days then going up again in order to test newly the significant high. In case of a volume above average this test fails being produced a lower high, or it reaches the surroundings of the first high again respectively, turning down again subsequently – finally forming the slightly higher high or the double top respectively.

C: The market overshoots again the first high after the one to three day correction of the first high, and after overcoming the first significant high the market being pushed up by a volume above average, and subsequently exhaustion in price and volume takes place. A durable fall cannot happen before the market is completely exhausted because there won’t be any buyers left and the short sellers get into a superior position.