Definition
Triple Top is a stronger reversal signal than double top as it shows three failed attempts to break resistance. The pattern confirms when price breaks below the support level connecting the two troughs between peaks.
Formula
Price Target = Support - (Resistance - Support)
Example
Price tests $50 resistance three times over months, failing each time. A break below $45 support signals a move toward $40. Three tests make this a reliable reversal signal.
FAQ
What is Triple Top?
A bearish reversal pattern with three peaks at approximately the same level.
How do you calculate Triple Top?
A common formula for Triple Top is: Price Target = Support - (Resistance - Support)
Why is Triple Top important?
Triple Top helps investors evaluate chart patterns and make more informed decisions.