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Triple tops and bottoms

Triple tops and bottoms are similar to head and shoulders. In fact it could be said that this pattern is only variation to head and shoulders. The only difference is that triple tops and bottoms have peaks/troughs at same level.

A similar logic is applied for creating tops and bottoms as for figure head and shoulders. Just for this pattern tops or bottoms are at the same level. It is important to spot line that connects peaks/troughs. This line in the case of head and shoulders is called neckline, here that line is a line of support/resistance.

Triple tops and bottoms
Triple tops

In case of triple tops, if the price after forming of third peak penetrates support line by 3%, the pattern is confirmed and can be expected that the price will fall significantly.

It is essential that the whole process is confirmed by the volume. As with the heads and shoulders, the greatest volume should be in the moment of creation of the left top. Each next top should have less trading volume than the previous one. At the end, the penetration of support line must be confirmed by a significant increase of volume.

Triple tops and bottoms
Triple tops

Triple bottoms have the same behavior as the tops, just they are mirrored and related to the downward trend.

Level to which price will move after reversal is calculated similarly as for head and shoulders pattern.

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