TA School

Triple Top

Master the triple-resistance reversal structure that signals strong seller distribution at market peaks.

intermediate level8 min read

Interactive Model

Interactive Visual Walkthrough

Triple Top Reversal

Step 1 of 4
Uptrend & Peaks

Buyers drive price up three consecutive times to the key resistance line at $115, but sellers reject the breakout each time.

Why it matters: Three failed attempts to exceed resistance show that buying interest is dry and institutional selling (distribution) is underway.

What is a Triple Top Pattern?

The Triple Top is a bearish reversal pattern that consists of three peaks at roughly the same price level, separated by intermediate troughs. It is a slower, more robust reversal pattern than the Double Top, indicating significant distribution at key resistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry →.

Pattern Structure

A valid Triple Top consists of:

  1. Three Peaks: Consecutive rallies that find resistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry → at the same price level.
  2. Neckline / Troughs: The low supportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry → line connecting the valleys between the peaks.
  3. Breakdown: A close below the neckline supportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry → on expanding volumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry →.

Psychology Behind the Pattern

  • Failed Attempts: Buyers attempt to push price higher three times but meet aggressive institutional selling at the resistance zone.
  • Shift in Power: The pullbacks to support show sellers gaining strength.
  • BreakoutBreakoutA price movement through an established support or resistance level. A breakout is often accompanied by increased volume, signaling strong momentum.Read full glossary entry →: Breaking the neckline support confirms that demand is exhausted and sellers are driving the market lower.

Identification Rules

  • Prior UptrendUptrendA market direction characterized by a sequence of higher highs and higher lows.Read full glossary entry →: Must occur after an upward move.
  • Peak Equality: Peaks must be relatively equal in height.
  • ** neck Break:** Wait for a close below support.
  • VolumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry →: Volume should expand during the breakdown.

Trading Setup

  • Entry: Sell short when a candle closes below the neckline or on a retestRetestA price movement back to a previously broken support or resistance level to verify it holds as the opposite barrier.Read full glossary entry →.
  • Stop-Loss: Place above the peaks.
  • Target: Project the height of the pattern downwards from the neckline.

Key Takeaways

  • •The Triple Top is a bearish reversal pattern showing three distinct peaks at key resistance.
  • •It indicates that the buyers have failed three consecutive times to push price higher.
  • •The neckline is the support level connecting the two intermediate troughs.
  • •The pattern is confirmed only when the price breaks and closes below the neckline support.
  • •The downside target is calculated by measuring the height of the pattern and projecting it downwards.
Knowledge CheckQuestion 1 of 5

What does a Triple Top pattern indicate about market sentiment?

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