Elearnmarkets - Financial Market Learning
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
  • Courses
  • Webinars
  • Learn On Elearnmarkets
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis
The Ultimate Guide to Triple Top and Triple Bottom Pattern 1

The Ultimate Guide to Triple Top and Triple Bottom Pattern

Elearnmarkets by Elearnmarkets
September 29, 2022
in Technical Analysis
Reading Time: 6 mins read
0
14.1k
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Triple Top and Triple Bottom patterns are the types of reversal chart patterns.

Triple Top is a bearish reversal chart pattern that leads to the trend change to the downside.

Whereas Triple Bottom is a bullish chart reversal pattern that leads to the trend change to the upside.

They are extensions of the Double Top and Double Bottom chart patterns.

Table Of Contents
  1. What is the Triple Top Pattern?
  2. What is Triple Bottom Pattern?
    • Learn to Identify Trend Reversals with Candlesticks in just 2 hours by Market Experts
  3. Formation of the Triple Top and Triple Bottom Pattern
  4. Trading with Triple Top
    • Stop Loss
    • Price Target
  5. Trading with Triple Bottom
    • Example
    • Stop Loss
    • Price Target
  6. Key Takeaways

In this blog, we will discuss the formations of these chart patterns and how to trade them:

Join TMP Join TMP Join TMP

What is the Triple Top Pattern?

A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend.

This pattern is formed with three peaks above a support level/neckline.

The first peak is formed after a strong uptrend and then retrace back to the neckline.

The formation of this pattern is completed when the prices move back to the neckline after forming the third peak.

When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed.

What is Triple Bottom Pattern?

A triple bottom chart pattern is a bullish reversal chart pattern that is formed after the downtrend.

This pattern is formed with three peaks below a resistance level/neckline.

Learn to Identify Trend Reversals with Candlesticks in just 2 hours by Market Experts

The first peak is formed after a strong downtrend and then retrace back to the neckline.

The formation of this pattern is completed when the prices move back to the neckline after forming the third peak.

When the prices break through the neckline or the resistance level after forming three peaks then the bullish trend reversal is confirmed.

Formation of the Triple Top and Triple Bottom Pattern

Here is how Triple Top and Triple Bottom chart pattern is formed –

Triple Top & Triple Bottom Pattern

Trading with Triple Top

There are some rules when trading with Triple Top chart patterns.

  1. Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend.
  2. Traders should spot if three rounding tops are forming.
  3. Traders should only enter the short position when the price breaks out from the support level or the neckline.

Stop Loss

In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern.

Price Target

The price target should be equal to the distance between the neckline and the tops.

Trading with Triple Bottom

There are certain rules when trading with Triple Bottom chart patterns.

  1. Firstly one should see the market phase if it is up or down. As the triple bottom is formed at the end of the downtrend, the prior trend should be the downtrend.
  2. Traders should spot if three rounding bottoms are forming and also note the size of the bottoms.
  3. Traders should only enter the long position when the price breaks out from the resistance level or the neckline.

Example

From the below example of the daily chart of Infosys Ltd. we can see how bullish reversal takes places after the formation of the triple bottom pattern at the end of the downtrend:

Daily Bottom Chart Pattern

Stop Loss

In the case of the Triple Bottom pattern, the stop loss should be placed at the third bottom of the pattern.

Price Target

The price target should be equal to the distance between the neckline and the bottoms.

Key Takeaways

  • Triple Top and triple bottom pattern are the types of the reversal chart pattern.
  • A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend.
  • A triple bottom pattern is a bullish reversal chart pattern that is formed after the downtrend.
  • There are certain rules when trading with these patterns.
Tags: chart patterntechnical basicstriple bottom patterntriple top pattern
ShareTweetSend
Previous Post

How to learn Intraday Trading in 30 minutes?

Next Post

Symmetrical Triangle Pattern – Meaning, Formation & Trading

Elearnmarkets

Elearnmarkets

Elearnmarkets (ELM) is a complete financial market portal where the market experts have taken the onus to spread financial education. ELM constantly experiments with new education methodologies and technologies to make financial education effective, affordable and accessible to all. You can connect with us on Twitter @elearnmarkets.

Related Posts

The Ultimate guide to Trading Divergences 2
Technical Analysis

The Ultimate guide to Trading Divergences

May 26, 2023
637
Trading Psychology: Guide to Master Your Mind in 5 Steps 3
Technical Analysis

Trading Psychology: Guide to Master Your Mind in 5 Steps

May 24, 2023
2.6k
Trading Psychology: 7 Keys to Successful Trading 4
Technical Analysis

Trading Psychology: 7 Keys to Successful Trading

May 22, 2023
2.6k
An Ultimate Guide to Risk Management, Stop Loss and Protecting Profits in the Stock Market 5
Technical Analysis

An Ultimate Guide to Risk Management, Stop Loss and Protecting Profits in the Stock Market

May 19, 2023
2.4k

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Facebook-f Twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Marketshala
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Vishal Malkan
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Stock Market for Beginners
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Relative Strength Index
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2023 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Get Elearnmarkets App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars

© 2020 Elearnmarkets All Rights Reserved