Triple Top Chart Pattern

BY: Rajesh chauhan Ravindra Jain

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What is Technical Analysis?

Technical analysis is the art of identifying market turning points at a relatively early stage
- Technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume

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Factors promoting technical analysis

Information does not flow within the market at the same speed Individuals process information in different ways People tend to follow the herd

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Technical Analysis assumptions

Chart is the market in action

Investors follow the herd

Investor pools are relatively stable

History tends to rhyme

Perception is reality

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Triple Top Chart Pattern

Introduction The Triple Top Reversal is a bearish reversal pattern typically found on bar charts, line charts and candlestick charts. There are three equal highs followed by a break below support. As major reversal patterns, these patterns usually form over a 3 to 6 month period.
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What does a triple top look like?

As shown below, the triple top pattern is comprised of three sharp peaks, all at the same level. A triple top occurs when prices are in an uptrend. Prices rise to a resistance level, retreat, return to the resistance level again, retreat, and finally, return to that resistance level for a third time before declining. In a classic triple top, the decline following the third peak marks the beginning of a downtrend. While the three peaks should be sharp and distinct, the lows of the pattern can appear as rounded valleys. The pattern is complete when prices decline below the lowest low in the formation. The lowest low is also called the "confirmation point.
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Volume

Duration of the Pattern

Details that I should pay attention to in the triple top?

Need for an Uptrend

Decisive Breakout

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Triple Top Pattern is very reliable, bearish reversal pattern. It is formed after an uptrend. It consists of three consecutive peaks or tops formed at a regular interval and of almost the same heights.
1.Top One: Top one or peak one is formed in continuation of the uptrend. There is a formation of new high followed by a pull back(10-20%) till the neckline(Support). 2.Top Two: Price again moves from neckline to make another high called the second top or peak 2 or resistance 2 followed by a pull back(10-20%) again till the neckline. 3.Top Three: Third top or third peak is formed when the price movers towards the resistance for the third time before giving a breakout. 4.Neckline Support: It is the line drawn through the bottom of the top one, top two till the top three. It serves as a important support to the pattern.
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Example of Triple Top Chart Pattern

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Thank You.
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