The Triple Top Pattern: What You Need To Know

You’ve probably heard the expression, “A picture is worth a thousand words.” In technical analysis, triple Top and triple bottom chart patterns mean the same thing. These reversal patterns form when security breaks out of an uptrend and then retraces at least 50% of the price increase before it resumes ascending. The triple-top pattern has numerous uses in technical analysis, but the most common is identifying reversal points in a trend. Knowing when to enter long or short trades using triple-top chart patterns is the key to financial success in the markets.

triple top pattern

Download Best Free Forex Trading Strategies

Beyond technical analysis, traders who want to improve their trading skills can also use triple-top chart patterns for their benefit. While some traders consider double tops and triple tops as reversal points, others see them as support and resistance levels from which they can draw support or resistance lines for long or short positions. Each trader needs to decide for himself whether double tops and triple tops are reversal points or not.

What is the Triple Top Pattern?

The triple-top pattern is a technical MT4 indicator that indicates an uptrend is likely to continue. In a triple complete design, price forms a series of peaks, with the third peak being the highest and most significant than the previous two. This pattern can be seen in markets that have experienced substantial price increases.

Be prepared for a possible market pullback after the third peak, as a reversal could occur. Keep an eye out for patterns such as the head and shoulders or death cross to anticipate future market trends. Use the triple-top design to predict future market trends and stay prepared for upcoming fluctuations.

Triple Top Candlestick Pattern Trading Strategy

The Triple Top Candlestick Pattern Trading Strategy is a powerful tool that can help traders make profitable trades. This strategy looks for specific candlestick patterns that indicate a potential reversal in the market. It involves looking for three tops or bottoms in the same price range, which signals that the trend may change.

Traders can then look to enter trades either short or long, depending on the situation. As with any trading strategy, it’s important to remember to practice risk management and use stop losses to minimize losses. By combining technical analysis with fundamental analysis, this strategy can help traders identify lucrative opportunities in the markets and capitalize on them.

Formation of the Triple Top and Triple Bottom Pattern

The Triple Top and Triple Bottom patterns are often seen in the markets. A rise in prices, a decline, and another increase characterize the design of the way and are also known as a reversal pattern because it reverses the direction of the trend. Both of these reversal patterns are not always indicative of a market crash.

The triple-top pattern is an example of a reversal pattern that suggests higher highs and higher lows. In this pattern, the price goes up to resistance level A, then bounces off the Top, falling to support level B and bouncing off the bottom to reach level C again. Finally, the price falls once more to help level D before reaching its lowest point.

The triple bottom pattern is an example of a reversal pattern that suggests lower highs and lows. In this pattern, the price falls to support level A, bounces off the bottom but fails to reach the Top, and finally bounces back from the bottom but does not go above support level B.

This pattern forms when the price falls continuously for a long time before making a short-term peak and trough down to support level C or perhaps even higher.

trading example

What Are Triple Top and Bottom Patterns in Crypto Trading?

Triple Top and Bottom Patterns in Crypto Trading are trading strategies traders use to identify potential buying or selling opportunities. This pattern is determined when the price of an asset moves up or down three times in succession, with each peak or trough being relatively similar in height. The Triple Top pattern signals that the price could be headed lower, while the Triple Bottom Pattern signals that the price could be higher.

Traders can use this pattern to determine whether they should buy or sell an asset based on its current trend. Using this pattern, the key to successful trading is identifying the right time to enter and exit a trade. It can provide traders with a profitable edge over other market participants if done correctly.

Trading with Triple Top

The Triple Top pattern is a technical indicator that identifies stock buying opportunities. The practice occurs when a stock price iterates three consecutive higher highs. The design is typically seen in equities with solid gains and increased volatility.

When the Triple Top pattern is confirmed, it usually signals an upcoming stock market rally. Traders are alert to how they can make profitable trades by taking advantage of the increase in price momentum before the Top is broken. However, triple-top designs are challenging to identify and can take time to develop.

How to Identify and Use the Triple Top Pattern in Forex Trading?

A triple-top pattern is a powerful tool for identifying trading opportunities in the trade Forex market. This pattern occurs when an asset or currency pair reaches three highs at roughly the same price level. To place a triple-top design, use charting software to look for three consecutive peak points that are close together. When this pattern occurs, it signals that the trend may be reversing and that prices could decline.

To take advantage of this opportunity, traders can enter into a short position when prices break below the lowest of the three peaks or place stop-loss orders above each peak point. By identifying and using the triple top pattern in Forex trading, traders can improve their chances of success and potentially profit from price movements in the market.

Trading with Triple Bottom

The Triple Top pattern is a technical indicator that suggests the presence of a bull market. It is formed when the stock prices of three different stocks rise together, creating a “triple top.” The triple top signals a bull market’s end and a new one’s start. To trade with triple bottom, investors must identify which of the three stocks will be the first to bottom out. For example, if an investor is bullish on stock A and bearish on stocks B and C, they must buy stock A before it bottoms out and sell it when it reaches its peak price. The trader would have realized a profit by selling at the Top.

What Are the Risks Associated with Trading the Triple Top Pattern?

The triple-top pattern is a chart pattern that signals that a security’s price has reached a resistance level three times. While this pattern can indicate a potential reversal, it also carries certain risks. One risk associated with trading the triple-top design is that the resistance may not hold, and the price may continue to rise. Another chance is that the security may reverse but not reach the expected levels of support, resulting in losses for traders.

Finally, traders may fail to correctly identify the triple top pattern or misjudge its significance, leading to incorrect assumptions about future price movements. As such, traders should always use caution when trading any chart pattern, including the triple-top design.

Mistakes to avoid when trading the Triple Top chart pattern

Trading the triple-top pattern can be profitable if you’re familiar with technical analysis and follow the steps outlined below. Firstly, do not trade on a trend already in your favor. In other words, do not let the pattern confirm itself and go ahead and take profits or stop loss at the resistance level. Also, avoid making significant investment decisions based on the chart pattern alone.

Secondly, always confirm the signal with a technical analysis tool. Use a charting program to validate the pattern and ensure it is a bona fide triple-top pattern. Lastly, wait for a correction before entering or exiting a trade. Take caution when investing in stocks that have formed triple-full habits, as these are often short-lived bear markets.

trading example 2

15 Best Forex Breakout Strategies

How to trade the Triple Top chart pattern (4 entry techniques that work)

The Triple Top chart pattern is a bullish pattern consisting of three peaks. To trade the way, you must identify the three peaks and enter the market at the right time. Four entry techniques work well for changing the way: buy low, sell high, wait for trend reversal, and trend continuation. Each method has its merits, and traders need to understand technical analysis to use them effectively and profit from triple-top patterns.

The most effective way to trade triple-top patterns is by buying low and selling high. Buying common means entering the market when the price hits a lower peak, and selling high means entering the market when the price hits a higher elevation. These techniques allow traders to take advantage of large upside price movements. However, they require a long-term view and emphasize discipline over emotions.

Another alternative way to trade triple-top patterns is by waiting for trend reversal. This involves waiting until the price breaks out of a downtrend before entering the market. Another option is to wait for price momentum to stop or reverse before entering the market. This strategy requires a trader with good technical analysis skills and an eye for trends.

Finally, when trading triple-top patterns, you can use trend continuation as an entry point. This involves waiting until the price crosses above or below a short-term resistance level before entering the market. With some practice and analysis, triple-top patterns are easy to spot on charts and can be profitable investments for experienced traders.

Identifying Breakouts After the Triple Top Pattern

Identifying breakouts after the triple-top pattern is an integral part of technical analysis. The Tripletriple top pattern Top is a chart pattern that indicates that a stock or asset has made three unsuccessful attempts to break out of its current range, creating a peak at each shot. After the third peak, the price of the stock or asset tends to fall sharply as investors lose confidence in its ability to rise further.

To identify potential breakouts after this pattern, traders often look for confirmation from other indicators, such as volume and momentum. Volume should increase significantly during the breakout phase, while momentum should also be strong, indicating that buyers are firmly convinced about the stock’s prospects. These indicators can help traders identify when it is time to enter a trade and capitalize on any potential gains from the breakout.

How to tell when the Triple Top chart pattern will fail?

The triple-top reversal pattern is bullish. When technical indicators confirm the way, the asset’s price has reached an extremely high level and is likely to fall back quickly.

The triple-top pattern features a trend reversal where the price breaks out of a trading range and shoots up rapidly. This breakout triggers the second peak, which is higher than the first. The third peak occurs after a brief period of consolidation when the price breaks down and drops sharply back down. The pattern doesn’t always lead to a loss of assets, but if technical indicators confirm it, there is a high probability of price reversal.

When the triple top pattern fails, the price will trend downwards for a brief period before reversing upwards. It changes higher than the first peak and then quickly drops below to close below the second peak. Similarly, if it fails on the fourth peak, the price will change lower than the third peak and then fall sharply below to close below the third peak.

It would be best if you sold your assets when technical indicators confirm the triple top pattern, as it indicates a reversal in the price trend. Remember that the triple complete design is only reliable if several other technical indicators, such as support and resistance levels, approve it.

Special Considerations for a Triple Top

The Triple Top pattern is a technical analysis indicator showing a trend’s reversal. It is known as a triple top pattern when three equal highs in a market are formed. A triple-full pattern is often seen as an indication that the trend has ended and the market is about to enter a new phase.

This pattern can be a great way to predict a reversal in price movements. Investors and traders should take note of triple-top habits and act accordingly. Other technical indicators can be used with triple tops to gain an even greater understanding of the market. Overall, the triple-top design provides valuable insight into the current state of a market and can be used to make profitable trading decisions.

Trading Double and Triple Tops

The triple-top pattern is a technical indicator that indicates an uptrend is in progress. This pattern consists of three spikes in price, each higher than the last. When to trade: Wait for a breakout of the triple top pattern before taking any trades. What to change: Stocks, commodities, forex, or indices. How to deal: Buy when the price hits the first spike and sell when it reaches the third spike.

Triple Tops vs. Head and Shoulders Pattern

The Triple Tops and Head and Shoulders Patterns are two of the most widely used patterns in technical analysis. A Triple Tops pattern is a chart formation that occurs when the price of an asset reaches a new high three times but fails to break through it and eventually declines. This pattern can indicate that the asset price is going to its resistance level and is likely to fall.

On the other hand, a Head and Shoulders Pattern has three peaks with a middle elevation higher than the other two. This pattern is generally seen as an indication of selling pressure in the market and is likely to result in a downward price trend. Investors use bearish patterns to identify potential trading opportunities, so traders need to understand them both to maximize their chances of success.

10 Simple MACD Trading Strategies

Frequently Asked Questions

How can you recognize a triple-top pattern in a technical analysis chart?

Triple top patterns are a technical indicator that indicates the presence of a trend in security. The trading pattern is formed when three successive peaks in the price of security coincide with each other. The height of the peaks will determine the strength of the trend. When trading, it is essential to note whether the trend is strong or weak before making investment decisions.

When do you see the triple top pattern, and what does it mean?

The triple-top pattern is a technical indicator that signals the start of an upward trend in the market. It is formed when the prices of three assets (e.g., stocks, commodities, and currencies) rise simultaneously. The pattern can indicate market volatility and potential market crashes, so it is essential to do your research before investing.

What are triple tops in the stock market?

Triple tops in the stock market are a technical pattern that occurs where the price of a security reaches three successive peaks. These peaks may be higher, lower, or equal in price.

Once you identify security as having reached a triple top, it is essential to pay attention to the bullish background trend of the guard to determine whether it is a good time to invest. This means that you should look at factors like the company’s track record, overall market conditions, and technical analysis indicators to see if there is an excellent opportunity to make money by buying the security at a lower price and selling it off at a higher one.

Is a triple top bullish?

Yes, a triple-top pattern is considered a bullish sign. The formation of a triple-full design indicates that prices are nearing a critical support level. If the asset’s cost fails to reach the highest point of the triple-top pattern, this may be a sign that the price target is headed for a decline.

Is a triple top bearish trend reversal?

No, triple-top formations are not always indicative of a bearish trend. It can take some time to determine the duration and severity of a triple-full pattern. Once you have this information, you can decide whether to sell your assets. If you are bearish, it may be prudent to do this before the pattern breaks.

Is it a triple-top reversal?

A triple-top reversal is a daily chart pattern used in technical analysis to indicate that a security’s price has peaked and is ready to move lower. This pattern looks like three peaks occurring at approximately the same level. Between each peak, there is a pullback, creating a series of higher and lower lows. A triple-top bearish reversal pattern typically develops over a few weeks or months as the price tests the same resistance level multiple times before finally breaking below it.

It can indicate potential bearish price action in security, particularly if accompanied by other signals such as volume or momentum indicators. Investors should watch out for this pattern when looking at stocks, as it can allow them to enter into short positions or exit long positions before further losses occur.

How reliable is a perfect triple top?

A triple-top pattern is a technical analysis indicator used to identify an upward price trend. The practice occurs when the cost of an asset reaches three consecutive peaks. When a triple top is placed, it is a sign that investors are bullish on the support and expect prices to continue going up.

It’s important to note that a triple-top pattern does not always mean that the asset will go up indefinitely. Sometimes, after the third peak, prices may decline again. However, if the design is confirmed by other technical indicators (like support and resistance levels), it can be considered a strong indication of an uptrend.

trading strategy

5 Advanced Trading View Strategies For Beginners

Is the triple top pattern the same as the head and shoulders?

The triple top pattern and head and shoulders are not the same.

The triple top pattern is a technical analysis term referring to a way of three consecutive peaks in prices. Head and shoulders is a technical analysis term referring to a form of two successive price peaks.

How to tell when the Triple Top chart pattern will fail?

The Triple Top reversal chart pattern is a reliable indicator of potential market reversals. It occurs when the price of an asset makes three attempts to reach the same peak without success. However, this pattern can fail. One way to tell if the design will fail is by looking at the volume of trading activity during the triple-top formation. If there is low trading volume or no increase in importance as the peaks form, then chances are that the pattern will not hold and that the trend may reverse itself soon.

Additionally, it can be helpful to look at indicators such as moving averages, oscillators, and other technical analysis tools to determine if any bearish signals present could signal a bearish reversal in trend. By considering all these factors, traders can better understand whether or not the triple-top chart pattern will fail.


While the triple top chart pattern may not be as popular as the double Top or reversal top chart pattern, it is a technical analysis pattern that traders should master. The triple-full chart pattern is formed when a security experiences a sustained price increase. It indicates that the security price will likely decrease over a long period. You need to trade with caution if a triple-top chart pattern forms on your chart because it could indicate that the security price is about to fall. However, you can benefit from trading with double and triple tops by following our tips above. Want to learn more charting techniques? This ebook covers the technical analysis of bars and candlestick charts! Download now!

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

Leave a Comment