What is Triple top pattern in Trading ?
Today we’re going to discuss about What is Triple top and Triple bottom pattern in Trading ?
Triple Top Pattern
The Triple Bottom pattern is a bullish reversal pattern that appears on a stock chart after a prolonged downtrend.
It is similar to the Double Bottom pattern, but instead of two bottoms, it is formed by three bottoms at approximately the same price level.
This pattern is considered a strong indication of a change in trend, as it shows that buyers have stepped in to support the price after three attempts to break below a certain level have failed.
The Triple Bottom pattern is typically considered to be complete when the price of the asset rises above the high point between the three bottoms, known as the neckline.
The height of the pattern, measured from the neckline to the bottom of the pattern, is used to calculate the potential upside for the asset once the reversal is confirmed.
It is important to note that the Triple Bottom pattern is just one of many technical analysis tools and should not be relied upon solely when making investment decisions.
It is always recommended to use multiple indicators and to consider fundamental factors such as earnings and economic data.
What is Triple Bottom pattern in Trading ?
Triple Bottom Pattern
The Triple Top pattern is a bearish reversal pattern that appears on a stock chart after a prolonged uptrend.
It is similar to the Double Top pattern, but instead of two peaks, it is formed by three peaks at approximately the same price level.
This pattern is considered a strong indication of a change in trend, as it shows that sellers have stepped in to push the price down after three attempts to break above a certain level have failed.
The Triple Top pattern is typically considered to be complete when the price of the asset falls below the low point between the three peaks, known as the neckline.
The height of the pattern, measured from the neckline to the top of the pattern, is used to calculate the potential downside for the asset once the reversal is confirmed.
It is important to note that the Triple Top pattern is just one of many technical analysis tools and should not be relied upon solely when making investment decisions.
It is always recommended to use multiple indicators and to consider fundamental factors such as earnings and economic data.
