📉 Triple Top Pattern – Bearish Reversal Signal

The Triple Top pattern is a classic bearish reversal formation that occurs after an uptrend. It signals that buying pressure is weakening and sellers are gaining control.

📘 What Is the Triple Top Pattern?

The Triple Top is a reversal pattern shaped like a stretched "M." It occurs after an uptrend and consists of three peaks at roughly the same price level separated by two lows (neckline). Breaking below the neckline confirms a bearish reversal.

• Occurs after a clear uptrend.
• Three highs (tops) at roughly the same level indicate strong resistance.
• The lows between the tops form the neckline.
• Break below the neckline signals a bearish trend reversal.
  
  
  

💡 Market Psychology

- First Top: Buyers push prices higher, profit-taking begins. - Second Top: Buyers attempt a new high but fail, showing selling pressure. - Third Top: Buyers fail again, confirming resistance. - Neckline Break: Confirms sellers are in control and a downtrend may follow.

✅ Pro Tip: Volume usually increases on the breakdown below the neckline, validating the bearish reversal.

⚙️ How to Trade Triple Top

1. Identify the three highs forming the "M" shape after an uptrend.
2. Draw the neckline at the lows between the peaks.
3. Enter a sell (short) position after price closes below the neckline.
4. Place a stop-loss above the third top.
5. Set a target equal to the height from the tops to the neckline projected downward.
   
   
   

🏁 Conclusion

The Triple Top pattern is a strong bearish reversal indicator. Recognizing it early and confirming with volume and support levels can help traders identify profitable shorting opportunities.

“When the Triple Top forms — resistance holds, and the bears take control.”