Triple Top Pattern
Triple Top Pattern is very reliable, bearish reversal pattern. It is almost a other variation of our Head and Shoulders pattern, except Head C is equal to left and right shoulders.The triple top is a price pattern generally formed in an uptrend suggesting following reversal and a drop in prices. It is considered more significant than the double top pattern.
The triple top is represented by three consecutive tops locates roughly at the same level and two bottoms. Resistance and support lines connect the tops and the lows respectively. The resistance is believed to be strong as the price reverses three times from the level where the asset is considered overpriced.If the price falls below the pattern’s minimum or support level (plus certain deviation is possible), the formation is then completed and can be interpreted as change in direction of the trend downwards serving as a sell signal.