Triple Top Pattern
Learn to recognize and trade a triple top pattern through interactive charts.
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What is a triple top pattern?
- Invesco Solar ETF (TAN) Triple Top stocks
- Revlon (REV) Triple Top stocks
- Gold (GOLD) Triple Top metals
- US Copper Index Fund ETF (CPER) Triple Top metals
Triple top duration
A triple top usually forms over 3 to 6 months, a length of time that is typical of major reversals.
Triple top characteristics
A triple top is characterized by 3 peaks, followed by a break below support.
- A triple top happens after an uptrend.
- A triple top is characterized by 3 highs, which face resistance. These highs should stand approximately on the same level and be clearly spaced out.
- Price should also find support, temporarily, at the neckline which connects the peaks' lows.
As a triple top demonstrates waning interest, you should expect trading volumes to fall over time. However, it is possible to see occasional spikes in volume around key support and resistance levels.
Triple top trading tips
The pattern completes once the price breaks convincingly below the neckline. Ideally, this break should happen on rising volume. Some traders wait for an unsuccessful re-test of the neckline before opening a short position. This means waiting for confirmation that the neckline acts as resistance, rather than support, over several trading sessions.
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