Triple Tops and Bottoms Pattern
The triple tops and bottoms pattern is another type of reversal chart pattern used in the analysis of a chart. When the price of the security has made three consecutive equal tops to break through the support level over a period of time, the chart is described as having a “triple tops” pattern.
Similarly, when the price of a security has made three consecutive equal bottoms to break through the resistance level, the chart is recognized as having a “triple bottoms” pattern.
In the majority of cases, a triple top occurs more quickly than a triple bottom.
Triple Tops and Bottoms Technical Analysis
While they are similar to double tops and bottoms and head and shoulders, the triple tops and bottoms patterns are not as commonly found in analyzed charts. Typically a sign of a trend reversal, the triple tops and bottoms patterns are formed when the movement of the price point tests the resistance and support levels three times.
The primary challenge with triple tops and bottoms technical analysis is that they look so similar to other chart patterns. In many cases, an inexperienced chartist could enter a reversal position too soon, calling it a double top or bottom when the tests are in fact still ongoing.
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