Triple Top / 三重天井
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A reversal pattern at the top of an uptrend where three peaks form at approximately the same price level. The failure to break through the same resistance three times, followed by a neckline breakdown, produces a strong sell signal. Considered more reliable than a double top. This is a classic pattern in traditional Japanese technical analysis, where three peaks indicate a market top.
Enter short when price clearly breaks below the neckline (support) on a closing basis. Waiting for a retest provides greater safety.
Project the distance from the peaks to the neckline downward from the neckline breakout point.
Place a stop-loss slightly above the third peak's high (1-3% above).
Ideally, the first peak has the highest volume, with progressive decreases at the second and third peaks. A volume increase at the neckline breakdown enhances reliability.