What the triple top and triple bottom are
A triple top and triple bottom are reversal chart patterns where price tests the same level repeatedly and fails to break it each time.
- A triple top pattern forms after a rise. Price reaches a resistance zone (an area where selling has stopped earlier advances), pulls back, returns to the same zone, pulls back again, and returns once more before turning down.
- A triple bottom pattern is the mirror image after a fall. Price keeps meeting a support zone (an area where buying has stopped earlier declines) and bounces from it.
The idea behind both is simple: repeated failure at a level shows that the other side keeps defending it. That shows only what has happened on the chart. It does not tell you what price will do next.
The pattern is a close relative of the double top and double bottom, with one extra test. If the middle peak stands clearly above the others, the structure is a head and shoulders instead.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Drawn example chart
The sketches below are drawn by hand. They show the shape only. They are not real prices.
- A, B, C are the tests of the level.
- x and y are the reaction lows (in a top) or reaction highs (in a bottom) between the tests.
- The neckline is the line through x and y. It may be flat or slightly sloped.
Identification rules
Most chartists use these conditions before calling the structure a triple top or bottom:
- A prior trend. A triple top needs a rise before it, a triple bottom needs a fall. Without a trend, the same shape is usually a rectangle or trading range.
- Tests in the same zone. The peaks (or troughs) do not have to match exactly. Treat the level as a zone, not a single price, and judge it relative to normal volatility on that chart.
- Clear swings between tests. The pullbacks to x and y should be visible moves, not small noise inside one cluster of candles.
- A neckline break on a close. The pattern is only complete when a candle closes beyond the neckline. Before that, it is a range with repeated tests.
- Volume, where available. Many traders look for weaker participation on each later test and stronger activity on the break. In spot forex, tick volume is only a rough guide.
A higher timeframe gives a structure that takes longer to form and is usually seen by more market participants. A pattern on a very short timeframe is easier to distort with random moves.
The measured-move convention
Classic charting literature projects a "measured move" after the break:
- Measure the vertical distance from the resistance (or support) zone to the neckline.
- Project that distance from the breakout point in the direction of the break.
This is a convention, not a forecast. It gives traders a common reference level for planning, for example for judging whether a possible exit is realistic compared with the risk taken. Price often stops short of the projected level, goes past it, or reverses soon after the break. To check how a given distance translates into money for your position size, use the trading calculators.
Invalidation
A triple top is generally treated as invalid when:
- price closes back above the resistance zone after the latest test, or
- after a neckline break, price returns and holds above the neckline, then pushes towards the highs again.
For a triple bottom, the same logic applies in reverse: a close below the support zone, or a failed break that returns below the neckline.
Many traders decide their invalidation point before the break and size the position so that a loss at that point is acceptable. See risk management for how position size, stop distance and account size fit together.
Common false breakouts and failure modes
- Early labelling. Traders often call the pattern after the latest test but before any neckline break. Many such ranges simply continue or break the other way.
- Wick through the neckline. A candle may pierce the neckline intraday and close back inside. Requiring a close reduces, but does not remove, this problem.
- Break and snap back. Price closes beyond the neckline, then returns inside the range within a few candles. This is common around news releases and session opens.
- Breakout through the zone instead. Repeated tests can also wear down a level. Price may eventually break through the resistance or support, which turns the setup into a continuation move.
- Spread and gaps. Wider spreads at rollover or during low liquidity, and price gaps over weekends, can trigger stop orders at worse prices than planned. See gap types.
Leveraged forex and CFD trading can lose money fast, and a well-drawn pattern does not change that. Before trading anything in Pakistan, read our page on regulation and safety.
How it fits with other analysis
Treat the pattern as one piece of evidence. Traders often compare it with the higher-timeframe trend, nearby price channels, and scheduled events from fundamental analysis. For the wider toolkit, start with technical analysis. Practising identification on historical charts or a demo account lets you see how often your own drawn patterns fail before any money is involved.
Frequent questions
What is the difference between a triple top and a double top?
A triple top has one more failed test of the same resistance zone. Both are completed only by a close beyond the neckline.
Is there a reliable triple top strategy?
No pattern works reliably. A typical approach defines the neckline, waits for a close beyond it, sets an invalidation level and sizes the position for that risk. Any of these steps can still end in a loss.
Must the peaks be at exactly the same price?
No. Treat the level as a zone. If one peak is clearly higher than the others, the structure may be a head and shoulders instead.
Does price usually reach the measured-move level?
The measured move is a reference convention, not a prediction. Price may fall short of it, pass it, or reverse.
Can the triple bottom pattern appear on gold, indices or crypto CFDs?
The shape can appear on any liquid chart. Volatility and gaps differ by market, so the zone width and the risk you can accept should be judged separately for each one.