Triple Top

DEFINITION of 'Triple Top'

A pattern used in technical analysis to predict the reversal of a prolonged uptrend. This pattern is identified when the price of an asset creates three peaks at nearly the same price level. The bounce off the resistance near the third peak is a clear indication that buying interest is becoming exhausted. It is used by traders to predict the reversal of the uptrend.

Triple Top

BREAKING DOWN 'Triple Top'

The three consecutive tops make this pattern visually similar to the head and shoulders pattern but, in this case, the middle peak is nearly equal to the other peaks rather than being higher. Many traders will enter into a short position once the price of the asset falls below the identified support level (shown by the black line in the chart above)

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RELATED FAQS
  1. How effective is creating trade entries after spotting a Multiple Tops pattern?

    Understand the basics of trading based on a multiple tops chart pattern, and learn what elements should be of primary focus ... Read Answer >>
  2. How are Multiple Tops patterns interpreted by analysts and traders?

    Understand how the multiple tops chart pattern is interpreted by traders and analysts and what makes it such a powerful reversal ... Read Answer >>
  3. How do I implement a forex strategy when spotting a Triple Top Pattern?

    Learn about the triple top chart pattern and how to use this reliable reversal signal to create an effective trade strategy ... Read Answer >>
  4. How are Triple Top patterns interpreted by analysts and traders?

    Learn about the formation of the triple top chart pattern and how this reliable reversal signal is interpreted by analysts ... Read Answer >>
  5. How effective is creating trade entries after spotting a Triple Top pattern?

    Learn about the triple top chart pattern and what makes this reversal signal a strong and reliable basis for the creation ... Read Answer >>
  6. How do I implement a forex strategy when spotting a Multiple Tops pattern?

    Understand how to use a multiple tops chart pattern to establish a profitable forex trading strategy, including the optimal ... Read Answer >>
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