Triple Top
A triple top is a technical analysis charting pattern used in the stock market. It is a bearish reversal pattern that is formed when a stock or index reaches a similar high price three times, but fails to break through the resistance level. The triple top is considered a reliable indicator of a bearish reversal, as it signals that the stock or index has failed to break through the resistance level three times. This suggests that the stock or index is likely to move lower in the near future.
History of the Term
The triple top pattern was first identified by Charles Dow, the founder of Dow Theory. He observed that when a stock or index reaches a similar high price three times, but fails to break through the resistance level, it is likely to move lower in the near future. This pattern has since become a popular tool for technical analysis and is used by traders to identify potential bearish reversals.
Comparison Table
| Pattern | Description |
|---|---|
| Triple Top | A bearish reversal pattern that is formed when a stock or index reaches a similar high price three times, but fails to break through the resistance level. |
| Double Top | A bearish reversal pattern that is formed when a stock or index reaches a similar high price two times, but fails to break through the resistance level. |
| Head and Shoulders | A bearish reversal pattern that is formed when a stock or index reaches a peak, followed by a lower peak, and then a higher peak. |
Summary
The triple top is a reliable indicator of a bearish reversal, as it signals that the stock or index has failed to break through the resistance level three times. This suggests that the stock or index is likely to move lower in the near future. For more information about this term, you can visit websites such as Investopedia, The Balance, and StockCharts.com.
See Also
- Double Top
- Head and Shoulders
- Cup and Handle
- Rounding Bottom
- Flag and Pennant
- Triple Bottom
- Ascending Triangle
- Descending Triangle
- Symmetrical Triangle
- Wedge Pattern
