Definition
Three peaks and a domed house is a complex, multi-stage topping pattern that unfolds over an extended period. It begins with a cluster of three peaks, moves through a separating decline and a base, then climbs into a rounded or domed advance, before finally rolling over into a substantial decline.
Because it is built from many distinct phases rather than a single shape, it is one of the more elaborate formations in technical analysis. Its appeal is that, once recognized, the full sequence maps out a long arc of likely future behavior.
Why it matters
How it works
The pattern proceeds through numbered phases. The first segment forms three peaks separated by minor pullbacks. A decline then carries price down to a base. From that base, price builds the domed house, a rounded advance that arcs up and then curves back down.
The completion is the decline off the dome, which often retraces the entire structure or more. Because the pattern spans many bars and phases, analysts apply careful rules about the relative heights and timing of each segment to avoid forcing the interpretation onto unrelated price action.