The Triple Top and Triple Bottom are powerful reversal formations that indicate repeated failed attempts to break through a key price level.
They work similarly to the Double Top/Bottom, but the extra test of the level often strengthens the signal.
What is a Triple Top?
A Triple Top appears after an uptrend and signals a potential bearish reversal.
Structure:
- Price reaches a high and pulls back
- Rises again to roughly the same level → pulls back
- Makes a third attempt to break the high, fails again
- Breaks neckline support to confirm reversal
Psychology:
- Buyers failed three times to push through resistance
- Sellers gain confidence and push the market lower
Trading It:
- Entry: After neckline break confirmation
- Stop Loss: Above the third top
- Target: Height from neckline to tops, projected downward
What is a Triple Bottom?
A Triple Bottom appears after a downtrend and signals a potential bullish reversal.
Structure:
- Price falls to a low and bounces
- Drops again to roughly the same level → bounces
- Makes a third attempt to break the low, fails again
- Breaks neckline resistance to confirm reversal
Psychology:
- Sellers failed three times to break support
- Buyers step in aggressively, pushing price upward
Trading It:
- Entry: After neckline break to the upside
- Stop Loss: Below the third bottom
- Target: Height from neckline to bottoms, projected upward
Key Tips for Trading Triple Patterns
- Best on higher timeframes (1H, 4H, Daily) to avoid false breaks
- The three tops/bottoms should be at similar price levels (small variations are okay)
- Confirmation is crucial — wait for a strong close beyond neckline
- Volume spike on breakout adds strength to the signal