Triple Top and Triple Bottom

A triple top is a bearish reversal pattern where price tests a resistance level three times and fails each time, then breaks below the support level formed by the pullbacks between the peaks. A triple bottom is the bullish version: three tests of support that hold, followed by a break above resistance. They are less common than double tops and bottoms and are often treated as stronger, because the level was defended one more time.

Anatomy#

Triple top or range?#

Visually, a triple top before it breaks is just a range with a clear ceiling. The only thing that makes it a reversal pattern is the eventual break of support. Until then, price could just as easily break out above the triple high, which would be a strong bullish signal since three rounds of selling were absorbed. This is why confirmation is essential. See Range Structure and Consolidation.

Reading the tests#

Clues that a triple top is more likely to resolve downward:

• Each rally to resistance shows weaker momentum or lower volume.
• Pullback lows hold at the same level or get lower, and price fails faster at each test. (Rising pullback lows that compress price against resistance are the opposite signal: an ascending triangle, which usually breaks upward.)
• Rejection candles such as shooting stars at each test.

Trading the pattern#

1. Confirm the prior trend and the three tests on a meaningful timeframe.
2. Wait for the break of the line formed by the intermediate pullbacks.
3. Enter on the close beyond it or on a retest. See Role Reversal and Retests.
4. Stop beyond the most recent test or the retest.
5. Target the pattern height projected from the breakout level.

Relationship to other patterns#

• With only two tests, it is a Double Top and Double Bottom.
• If the middle peak is higher than the other two, it is a Head and Shoulders.
• If pullback lows rise while highs stay flat, it becomes an Ascending Triangle, which usually breaks upward.
• If highs fall while lows stay flat, it becomes a Descending Triangle.

Timeframe and time between tests#

Triple tops and bottoms are most meaningful on daily and weekly charts, with weeks between each test. Three touches of a level within a few candles on a 5 minute chart are just a small range and carry little weight. The longer the pattern takes to form, the more traders have positions tied to the level, and the bigger the move tends to be when it finally breaks.

Common mistakes#

• Trading the third test as a guaranteed reversal. Levels tested repeatedly often eventually break.
• Ignoring rising lows, which signal the opposite outcome.
• Not waiting for the confirmation break.

Frequently asked questions#

What is a triple top?#

A bearish pattern where price fails three times at the same resistance level and then breaks below the support formed between the peaks.

Is a triple top stronger than a double top?#

Often considered so, because resistance held one more time, but it still needs confirmation by a break of support.

What happens if price breaks above a triple top?#

The pattern fails, and the breakout above a level that rejected price three times is often a strong bullish signal.

Next, learn a slower, curved reversal: the Rounding Bottom.