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  • Chart pattern
  • ↓ Bearish reversal
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Triple Top

A reversal pattern that forms at the end of an uptrend, when price makes three peaks at roughly the same level. It completes when price falls below the neckline drawn through the two troughs between the peaks. It can signal that price failed to clear the same level three times and that the uptrend is losing strength.

Neckline Peak 1 Peak 2 Peak 3 Breakdown h
The orange dots mark the two troughs that define the neckline. h is the height of the peaks above the neckline.

How it forms

  1. Prior uptrend. The pattern is a reversal signal. It needs a clear uptrend before it.
  2. First peak and first trough. Price makes a new high, then pulls back visibly to a trough. A figure often quoted for daily charts is a drop of about 10% or more from the peak. On lower timeframes it can be smaller.
  3. Second peak and second trough. Price rises again, stalls near the first peak and pulls back once more. The second trough often ends near the first.
  4. Third peak. Price reaches the same level a third time but cannot get past it. The three peaks are usually within about 3% of each other. They are separated by a clear stretch of time, not just a few candles.
  5. Neckline. A line joining the two troughs. If the troughs are not level, a horizontal line through the lower one is often used instead.
  6. Completion. The pattern is complete when price closes below the neckline. Until then, three peaks are only a possibility.

The figures are approximate. They are commonly accepted textbook values, not hard limits.

What it suggests

Sellers push price back from the same level three times. Each time, buyers reach that level but lack the strength to get above it. This can show that selling pressure is still there and that the uptrend is tiring. A break of the neckline through the two troughs suggests that the level buyers defended twice has also been lost.

Until the break, three peaks cannot be told apart from a sideways range. While price moves between two flat levels, the direction of the pattern is not settled. Before the neckline breaks, price can rise above the peaks and the uptrend can carry on.

When it strengthens, when it weakens

Strengthens

  • All three peaks forming in the same resistance zone
  • Volume falling at each peak compared with the one before
  • Volume rising as the neckline breaks
  • Both troughs sitting at roughly the same level
  • Forming on a higher timeframe (4H, 1D)

Weakens

  • No clear uptrend before the pattern
  • Peaks forming very close together in time
  • Very shallow troughs between the peaks
  • The break coming on low volume
  • A strong support zone just below the neckline

The MarketLevelMap view

How it relates to zones

A triple top is the same resistance zone being tested three times. Its link to zones is read in three places:

  • If all three peaks fall in a resistance zone, the pattern shows that zone being defended three times. The peaks need not be at exactly the same price; it is enough that all three sit inside the same zone. A peak whose wick pokes above the zone but closes back inside can also count as a defence.
  • If the two troughs line up with a support zone, the neckline is really a support zone that has held twice, not a single line. The break only means something once price closes below that zone.
  • The first support zone below the break is a more realistic reference than the measured move for where price may react again.

After the break, price sometimes returns to retest the neckline from below. The zone that was support may now act as resistance. If price closes back above the neckline in this test and holds there, the break is considered to have weakened.

When it completes

Close below the neckline (the two troughs).

When it is invalidated

Before completion: If price closes above all three peaks without breaking the neckline, the pattern is considered not to have formed. The peaks then become a level that has been cleared, not resistance.

After completion: Even after a close below the neckline, if price climbs back above it and closes above the third peak, the bearish scenario is considered invalid.

Often confused with

For general information only. Not investment advice.Last updated: