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)

RELATED TERMS
  1. Triple Bottom

    A pattern used in technical analysis to predict the reversal ...
  2. Head And Shoulders Pattern

    A technical analysis term used to describe a chart formation ...
  3. Diamond Top Formation

    A technical analysis reversal pattern that is used to signal ...
  4. Descending Tops

    A pattern in charts where each peak in price is lower then the ...
  5. Uptrend

    Describes the price movement of a financial asset when the overall ...
  6. Hook Reversal

    A short-term candlestick pattern, occurring in either an uptrend ...
Related Articles
  1. Forex Education

    How To Interpret Technical Analysis Price Patterns: Triple Tops And Bottoms

    Triple and double tops and bottoms may be tough to spot, but once you learn them, they can be powerful patterns.
  2. Charts & Patterns

    Analyzing Chart Patterns: Round Bottoms

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com A rounding bottom, also referred to as a saucer bottom, is a long-term reversal pattern that signals a shift from a downtrend ...
  3. Trading Strategies

    Technical Analysis: Chart Patterns

    By Cory Janssen, Chad Langager and Casey MurphyA chart pattern is a distinct formation on a stock chart that creates a trading signal, or a sign of future price movements. Chartists use these ...
  4. Charts & Patterns

    Analyzing Chart Patterns: Conclusion

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com This introduction to chart patterns has provided a broad overview of chart pattern analysis and several of the largest patterns. ...
  5. Charts & Patterns

    Advanced Candlestick Patterns

    Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
  6. Charts & Patterns

    Analyzing Chart Patterns: Triple Tops And Bottoms

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The triple top and triple bottom are reversal patterns that are formulated when a security attempts to move past a key level ...
  7. Charts & Patterns

    Analyzing Chart Patterns: Double Top And Double Bottom

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The double top and double bottom are another pair of well-known chart patterns whose names don't leave much to the imagination. ...
  8. Trading Strategies

    Introduction To Technical Analysis Price Patterns

    To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form.
  9. Charts & Patterns

    The 5 Most Powerful Candlestick Patterns (NUAN, GMCR)

    Statistics show unusual accuracy for the buy and sell signals of certain candlestick patterns like abandoned baby, evening star, and three black crows.
  10. Trading Strategies

    How To Trade The Head And Shoulders Pattern

    The head-and-shoulders chart pattern is a popular and easy-to-spot pattern - once a trader is aware of what they are watching for.
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 >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center