Triple Top & Triple Bottom
Overview
Triple tops and triple bottoms are reversal patterns where price tests the same level three times before reversing. They are essentially double tops and bottoms with an additional test, making them rarer but potentially more significant. The three-touch structure confirms that a price level is acting as a strong barrier, and the eventual break of the pattern's support or resistance level triggers the reversal.
Key Concepts
Three peaks (triple top) or troughs (triple bottom) at approximately the same level. Confirmation level is the lowest reaction low (top) or highest reaction high (bottom). Volume often decreases on each successive touch of the level. The third touch frequently shows momentum divergence on oscillators. More powerful than double tops/bottoms due to the additional rejection.
Entry Signals
Enter on a confirmed break below the pattern's support (triple top) or above resistance (triple bottom) with volume expansion. Wait for a retest of the broken confirmation level for optimal risk-reward entry. Momentum divergence on RSI or MACD at the third touch adds strong confluence. The spacing between touches should be proportional — very tight clusters may not qualify.
Exit Signals
Measured-move target equals the height of the pattern (from the peaks/troughs to the confirmation level) projected from the breakout. Place stops above the triple top or below the triple bottom. Take partial profits at 1:1 risk-reward and trail the remainder. Invalidation occurs if price reverses through the confirmation level after breakout.
Best Timeframes
4H, Daily, Weekly
Pro Tips
Triple tops and bottoms are often confused with rectangles — the key difference is the reversal context and the declining momentum on successive touches. Look for subtle lower highs on a triple top or higher lows on a triple bottom for the strongest formations. These patterns are most effective when they form after prolonged trends.
More Topics in This Category
Measured Move Projections
Measured move projections use the length of a prior price swing to forecast the target of the next swing in the same direction. The technique assumes market symmetry — that the second leg of a move will approximate the distance of the first leg. Measured moves apply to impulse waves, corrective patterns, and chart pattern breakouts, providing objective price targets that remove subjectivity from exit planning.
Broadening & Expanding Patterns
Broadening patterns, also called megaphone or expanding patterns, form when price creates progressively higher highs and lower lows, diverging rather than converging. These patterns reflect increasing volatility and disagreement between buyers and sellers, often appearing during periods of uncertainty or at major market turning points. Broadening patterns are among the most challenging formations to trade because they lack the contracting structure of typical chart patterns.
Diamond Patterns
Diamond patterns are relatively rare reversal formations that combine a broadening pattern followed by a symmetrical triangle, creating a diamond-shaped outline on the chart. They typically appear at market tops (diamond top) or, less commonly, at bottoms (diamond bottom). The pattern signals an exhaustion of trend momentum as volatility first expands then contracts before a decisive breakout.
Rising & Falling Wedges
Rising and falling wedges are converging trendline patterns where both support and resistance slope in the same direction. A rising wedge (both lines slope upward, converging) is typically bearish, while a falling wedge (both lines slope downward, converging) is typically bullish. Wedges differ from triangles because both trendlines slope in the same direction rather than converging symmetrically.