Learning Hub

Tower Top

bearish

Definition

A tall up-candle, sideways congestion, then a tall down-candle — a top reversal.

Psychology

Buyers pushed up, stalled at the top, then sellers took over and gave it all back.

Real-life analogy

💡 Price climbs a tower, flattens at the very top, then tumbles down the far side.

Confirmation

A tall bearish candle that retraces most of the prior advance.

Invalidation

A close back above the congestion high.

Historical behaviour

A slower, clearer cousin of the evening star; stronger after an extended uptrend.

Illustrative success rate

~55-60% when confirmed · Medium reliability

Common beginner mistakes

  • Confusing it with an evening star (a tower has congestion, not a gap)
  • Acting before the down-candle completes

Quick quiz — did you understand?

1. Is the Tower Top generally considered bullish, bearish, or neutral?

2. What is the best practice before acting on a Tower Top?

3. Which is a common beginner mistake with the Tower Top?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.