In forex trading, tops and bottoms refer to key price levels where a currency pair's trend reverses. A top is the highest price point before a downtrend begins, signalling that buyers are losing momentum and sellers are taking control. Conversely, a bottom is the lowest price point before an uptrend starts, indicating that selling pressure has weakened and buyers are stepping in. Identifying these levels helps traders predict potential trend reversals and make informed decisions about entry and exit. Tops and bottoms can form as sharp peaks (in volatile markets) or rounded patterns (in gradual reversals). Traders utilise technical analysis tools, such as trendlines, moving averages, and oscillators (e.g., RSI, MACD), to identify these reversal points. False breakouts—where price briefly surpasses a top or bottom before reversing—are common, so confirmation through candlestick patterns or volume analysis is crucial. Recognising tops and bottoms is essential for strategies like swing trading and counter-trend trading, but timing them accurately requires practice. While no indicator guarantees precision, combining multiple methods improves the reliability of spotting these critical market turning points.