triple top

The triple top candlestick pattern is a technical analysis pattern that occurs when the price of an asset creates three peaks at approximately the same price level, followed by a price decline.

The pattern is formed when the price reaches a resistance level and is unable to break through it. The first two peaks are usually smaller than the third one, and the pattern is considered complete when the price breaks below the support level formed by the troughs between the peaks.

  1. Triple Top Candlestick

    The triple top pattern is a bearish reversal pattern that suggests that the price may be losing momentum and that a reversal in the trend is likely. Traders often look for this pattern as an indication that it may be a good time to sell an asset or to take a short position.

    • A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend.
    • It consists of three peaks peaks below a resistance level.
    • Alternatively, it can also occur with three peaks that occur above a support level called as neckline, which is going to break
    • These peaks suggests accumulation is taking place, which is a sign of start of a trend
    • The pattern is not complete until the stock closes below the lows made between tops #2 and #3, means breakdown of support level/neckline.
    • The perfect breakout is determined by an increase in volume near the neckline.


How to take position in the market?
- Depending on trading psychology and individual risk, some Traders follow below rules to enter into positions.

  1. Entry

    • Enter a short position after the stock price breaks below the support level/neckline.
    • Few traders may also wait for confirmation of the pattern with a close below the lows made between tops #2 and #3 before entering a short position.
    • Few traders may choose to enter a short position as the stock price approaches the neckline

  2. Target

    • Traders often look for a decline in price equal to the distance between the support level and the high point of the triple top pattern.
    • Few traders may choose to take profits at the next level of support or a previously established price target.
    • Some traders may also use technical analysis tools like Fibonacci retracements or moving averages to identify potential take profit levels.

  3. Stop Loss

    • Stop loss orders can be placed above the neckline of the triple top pattern to limit losses in case the pattern fails to confirm.
    • Few traders may choose to place the stop loss just above the neckline to minimize the risk of a false breakout.
    • Some traders may use a stop loss above the third peak to provide a wider buffer for price fluctuations.
    • The specific placement of the stop loss will depend on individual risk tolerance and trading strategy.
  • The triple top pattern is a relatively short-term pattern that may not be as useful for longer-term investors or traders. It is typically used to identify short-term reversals in price trends.
  • Its Not mandatory that all 3 tops should be at same price level.
  • In a triple top pattern, when the neckline is broken, the market often attempts to return and retest the same neckline level again for price correction.

    • Example-1 : Triple Top pattern

    Example-2 : Market Retest after Triple Top pattern breakdown

    Example-3 : Effective Triple Top pattern

    Example-4 : Multiple opportunities to Short using Triple Top pattern

    Example-5 : Triple Top pattern with Target and Stoploss

    Example-6 : Triple Top pattern with Pullback(retest)

    Example-7 : Triple Top pattern making Rapid fall but market makes a Price correction by Pullback

    Example-8 : Retest with Candlestick Patterns confirmation after Triple Top pattern

    Example-9 : Triple Top pattern with Retest and Without Retest

    Example-10 : Perfect Triple Top pattern, Will it go UP or DOWN?



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