Triple Top

A triple top is exactly what it sounds like — three rallies to the same resistance level, with two pullbacks between them, all failing to break through. The pattern is rarer than a double top but generally more reliable, because three failed tests at the same level represent a stronger ceiling than two. The pattern completes when price breaks below the support formed by the two pullback lows (the neckline). Once that happens, the trapped buyers from all three failed rallies start to cut their positions, and the move down can be vicious. Measured target is the same as a double top: distance from the peaks to the neckline, projected below the breakout. Triple tops often hit measured targets faster than double tops because the trapped position is bigger.