The Forex chart price trading pattern known as the Triple Top is a relatively rare reversal pattern that generally accurately indicates a move towards major reversal in the current direction of the trend or issue it represents.
The triple top pattern is similar in appearance to the head and shoulders patterns, in that it is represented by a series of three high highs and lows, except that with the triple top all three highs will be of an approximate level (as opposed to slightly ‘dipped’ middle high position of the head and shoulders chart pattern.)
The appearance of the triple top indicates the existence of a uptrend, which is currently in the process of transforming into an downtrend, the prolonged uptrend having run out of steam and traders interest having begun to decline.
As with a triple bottom, it is generally thought that the longer a particular trend takes to fully develop, the stronger the significant change in price once breakout occurs. Typically triple tops and bottoms take around four months to develop, and are considered one of the slowest types of chart patterns to fully mature.
With a triple top the support level can be imagined by drawing a line at the base level of the lows and usually traders choose to enter into short position once the price level falls through this support level.