As of 08/23/2019
  Indus: 25,629 -623.34 -2.4%  
  Trans: 9,740 -333.41 -3.3%  
  Utils: 832 -8.66 -1.0%  
  Nasdaq: 7,752 -239.62 -3.0%  
  S&P 500: 2,847 -75.84 -2.6%  
YTD
 +9.9%  
 +6.2%  
 +16.7%  
 +16.8%  
 +13.6%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/23/2019
  Indus: 25,629 -623.34 -2.4%  
  Trans: 9,740 -333.41 -3.3%  
  Utils: 832 -8.66 -1.0%  
  Nasdaq: 7,752 -239.62 -3.0%  
  S&P 500: 2,847 -75.84 -2.6%  
YTD
 +9.9%  
 +6.2%  
 +16.7%  
 +16.8%  
 +13.6%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's Triple Tops

 

Statistics updated on 5/13/2019.

Triple Tops: Summary

Triple tops are chart patterns with decent performance in a bull market. The failure rate is higher than I like to see, but the average decline is reasonable. Thus, if you own a stock and the triple top confirms (price closes below the lowest valley in the pattern), then consider selling immediately.

$ $ $

For more information on this pattern, read Encyclopedia of Chart PatternsEncyclopedia of Chart Patterns book. pictured on the left.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

Triple top chart pattern
Triple Top Chart Pattern

 

Triple Tops: Important Bull Market Results

Overall performance rank (1 is best): 27 out of 53
Break even failure rate: 25%
Average decline: 14%
Pullback rate: 66%
Percentage meeting price target: 49%

The above numbers are based on 1,964 perfect trades. See the glossary for definitions.

Triple Tops: Identification Guidelines

CharacteristicDiscussion
Price trendUpward leading to the pattern.
ShapeThree peaks near the same price with a downward breakout.
Middle peakSometimes the middle peak is priced marginally below the other two.
VolumeTrends downward 62% of the time, but is usually high beneath formation of each peak.
Bear marketMore triple tops appear in a bear market than in a bull one.
ConfirmationThe pattern becomes valid when price closes below the lowest valley in the pattern.

Top of page More

Triple Tops: Trading Tips

Trading TacticExplanation Triple top chart pattern measure rule
The Measure Rule

Triple top chart pattern peaks

Peaks

Measure ruleCompute the height from the highest peak (point B in the Measure Rule figure to the right) to the lowest valley (A) and then multiply it by the above 'percentage meeting price target.' Subtract the result from the lowest valley (A) to get a price target (C).
Price reversalPrice must have something to reverse, so if the rise leading to the pattern is small, expect a small decline.
ConfirmationWait for price to close below the lowest valley (confirmation, point A in the Measure Rule figure to the upper right) before placing a trade.
PeaksWhen the last peak (point B in the Peaks figure to the right) is below the middle one (A), then expect a stronger decline. A lower top suggests weakness as price attempts to make a new high but fails.
Price velocityA high velocity rise leading to the pattern often results in a larger decline post breakout.
Yearly lowPatterns in the lowest third of the yearly price range perform best.
Volume trendA downward volume trend suggests better post breakout performance, but differences are minor (one percentage point).
Quick declineA quarter of the tops (27%) reach the ultimate low in the first week after a breakout. A third (38%) bottom in 2 weeks or less.
PullbacksPullbacks hurt post breakout performance.

Top of page More

Triple Top Example

Triple top chart pattern example

The above figure shows an example of a triple top chart pattern with tops at 1, 2, and 3. Price does not rise far leading to the triple top and the decline after the triple top confirms (price closes below the blue confirmation line) is not that large either. A pullback sees price rise up to the confirmation line before resuming the decline.

-- Thomas Bulkowski

Top of page More

Other Triple Top Examples

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:      New                  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

Copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.

Home Advertise Contact Donate Links Privacy/Disclaimer

Make it idiot proof and someone will make a better idiot.Smiley