Triple Top - Chart Pattern

What is a Triple Top Formation?

Triple Top is a chart pattern with three tops very close in price. This pattern can be seen in all time-frames. There are a few requirements to classify a chart pattern as a triple top:

1. Price highs are close to each other

2. Equal distance in time between highs

3. Volume decreases on each successive top

Triple tops have an enormous amount of cause or breakout potential as the price of the stock has moved back in forth within a defined range. So, when the stock finally breaks out, there is an expansion in volume and price movement. Breakouts can occur to both the upside and downside. If you enter a breakout of a triple top pattern, you will want to keep a close stop above/below the support/resistance level.

Price Target

When a stock breaks out of a triple top chart pattern, the price target is the range of the formation added to the breakout level.

Triple Top Breakout

Triple Top