Triple top
The same as a double top, but with three touches. The more obvious the pattern, the more likely a poke before the reversal.
Triple top — what it is?
A triple top is three highs at one level. The logic is the same as the double top, only the crowd's faith in the level is even stronger.
By the third touch the level has accumulated the maximum number of orders and stops. Everyone who wanted to trade the level is already in.
So the third touch more often ends in a poke than a bounce: there is nothing left to collect there except the stops of everyone who traded the bounce.
Triple top — how it is built?
Mark the level by the full range of the peaks, not by the bodies. Three touches is no longer support for the level — it is an announcement of where the liquidity lies.
Triple top — common mistakes
Trading the third bounce off the level. That is exactly the one that gets swept.
Treating the number of touches as a measure of the level's reliability. If anything it is the opposite.
Not looking at where price is coming from on the third approach.
Holding through a poke in the hope that the level will "hold".
Related to
Glossary
- double top
- two highs at the same level.
- Poke
- stepping beyond a range boundary and returning inside. The same thing as Wyckoff’s spring and UTAD.
- range
- movement inside a horizontal corridor with no clear direction.
- support
- a level price has previously bounced up from.
- liquidity
- a cluster of pending orders and stops in a particular zone. The fuel for large capital to move.
Test yourself
Which chart shows a double bottom?
Correct. The app has tasks like this in every lesson — 119 lessons on real charts. Solve in the app →
Not this one. The right answer is the other chart. The app has tasks like this in every lesson — 119 lessons on real charts. Solve in the app →