Learn / Buy and sell signals
Triple Top and Triple Bottom
A level tested twice and broken on the third try.
The Triple Top and Triple Bottom are among the most reliable and most widely watched patterns in Point & Figure. A level gets tested twice and holds, then breaks on the third attempt.
Triple Top buy signal
The rule: two columns of X's top out at the same level, and a third X column rises one box above that level.
Each time price reached the resistance level, sellers turned it back. When the third rally finally breaks through, the supply that sat at that level has been absorbed. That's why the Triple Top is considered stronger than a Double Top: the resistance it beats was proven twice.
Triple Bottom sell signal
The rule: two columns of O's bottom at the same level, and a third O column falls one box below that level.
Support held twice, then gave way. Buyers who defended that level are now holding losses, which often adds selling pressure.
Things to watch
- The tops must match. If the second top is lower than the first, it's not a Triple Top. If the column in between is shorter, see Spread Triples.
- The bottoms between them can vary. A Triple Top with rising bottoms is especially constructive, since buyers are stepping in at higher prices each time.
- A one-box break can fail. If price clears the level by only one box and immediately reverses three boxes, it may be a Bull Trap.
- What comes next. A Triple Top followed by a Double Top forms a Bullish Catapult.
For education only. Nothing here is investment advice or a recommendation to buy or sell any security.