Triple Top
A triple top is a bearish reversal pattern where price fails at the same resistance level three times, indicating strong selling pressure.
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How to Identify
Price reaches a resistance level and pulls back three separate times
All three peaks form at approximately the same price level
Volume generally declines with each successive peak
A support level (neckline) connects the two troughs between peaks
Pattern confirms when price breaks below the neckline with volume
Trading Rules
Entry Rules
- Wait for a decisive close below the neckline support
- Enter on a retest of the broken neckline from below
- Confirm with bearish momentum and expanding volume on the break
Exit Rules
- Place stop-loss above the highest of the three peaks
- Take profits at the measured move target
- Trail the stop using the 20-period moving average
Measure the height from the peaks to the neckline. Project that distance downward from the neckline break point.
Place stop-loss above the highest peak. For a more aggressive stop, use above the most recent (third) peak.
Success Rate
77% according to Bulkowski
Success rates vary based on market conditions, timeframe, and trader experience. Always validate patterns with your own journal data.
Journaling Tips
Record the time duration across all three peaks and the neckline tests
Note volume behavior at each peak to confirm the declining pattern
Track how the market reacted after the neckline break and whether a retest occurred
The triple top is a powerful bearish reversal pattern that forms when price fails to break through a resistance level on three separate occasions. Each failure strengthens the resistance and weakens buyer conviction.
Why Three Tests Matter
Two failed tests at resistance form a double top, which is already a strong reversal signal. When price fails a third time, it sends a clear message: buyers have exhausted their ability to push through that level. The trapped buyers from all three rallies become sellers once the neckline breaks.
Identifying the Pattern
A valid triple top requires:
- Clear uptrend preceding the pattern formation
- Three distinct peaks at approximately the same level (within 2-3%)
- Two troughs between the peaks forming the neckline
- Declining volume from the first peak to the third
The peaks do not need to be perfectly level. Slight variations are normal and do not invalidate the pattern.
Trading Execution
The neckline break is the entry trigger. Aggressive traders may enter immediately on the break, while conservative traders wait for a retest. The retest approach sacrifices some potential profit for better confirmation.
A common technique is to enter half the position on the break and add the remaining half on the retest. This balances the risk of missing the move with the desire for confirmation.
Time Factor
Triple tops that form over longer periods tend to produce larger subsequent moves. A triple top that develops over three months on a daily chart carries more weight than one forming over three days on a 15-minute chart.
The time between peaks matters as well. Evenly spaced peaks suggest a systematic pattern of buying and selling that increases reliability.
Journal Analysis
Track every triple top trade with attention to the spacing between peaks, the volume decline across peaks, and your entry timing. Over time, you will build a dataset that shows your personal success rate with this pattern and which variations produce the best results for your trading approach.
Common Mistakes
Confusing a triple top with a range-bound market that has no prior uptrend
Entering too early after only two peaks, before the third peak confirms the pattern
Placing stops too tight, getting shaken out before the real move begins
Frequently Asked Questions
How is a triple top different from a head and shoulders?
In a triple top, all three peaks are at approximately the same level. In a head and shoulders, the middle peak (head) is higher than the two side peaks (shoulders). Both are bearish reversal patterns.
How long does a triple top take to form?
Triple tops typically take longer than double tops to form. On daily charts, expect 3-6 months. The extended formation period often leads to stronger moves once the neckline breaks.
Is the triple top more reliable than the double top?
According to Bulkowski, triple tops have a slightly higher success rate (77% vs 73%) because the third failed attempt at resistance provides stronger confirmation of seller dominance.
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