TRIPLE TOP PATTERN

 

The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of price. Consisting of three peaks, a triple top signals that the price may no longer be rallying, and that lower prices may be on the way. 

 Triple tops may occur on all time frames, but in order for the pattern to be considered a triple top, it must occur after an uptrend. The opposite of a triple is a triple bottom, which indicates thevprice is no longer falling and could head higher.

 

  The triple top pattern occurs when the price  creates three peaks at nearly the same price level. The area of the peaks is resistance. The pullbacks between the peaks are called the swing low.After the third peak, if the price falls below the swing lows, the pattern is considered complete and traders watch for a further move to the downside.