Definition
A triple top is a bearish reversal pattern in which price rallies to a similar high three separate times, failing to push through that level on each attempt. The three peaks sit at roughly the same price, separated by two intervening troughs, and they form after a prior uptrend.
The pattern signals that buyers have repeatedly tried, and repeatedly failed, to drive price above a ceiling of supply. The level connecting the two troughs acts as a confirmation line: the pattern is only considered complete once price closes decisively below that line.
Why it matters
How it works
The resistance level at the three peaks represents a band of sellers willing to supply shares at that price. Each rally meets that supply and is turned back. By the third rejection, buyers have spent their conviction, and the balance shifts. When price falls through the confirmation line drawn across the troughs, former support becomes resistance, and the downtrend is considered underway.
Traders often measure a price target by taking the height of the pattern — from the peaks down to the lowest trough — and projecting it downward from the breakout point. Declining volume across the three peaks strengthens the case, suggesting weakening buying interest.