The Triple Top and Triple Bottom strategy is a classic price action method used to identify potential major reversals in the market. These patterns represent repeated failure by price to break through a key level—whether at resistance (triple top) or support (triple bottom). When confirmed, they often lead to powerful trend reversals or large corrective moves.

This strategy is particularly effective across all asset classes and timeframes, and when combined with volume, structure, and momentum indicators, it offers a high-probability framework for both intraday and swing traders.

What Is a Triple Top or Triple Bottom Pattern?

Triple Top

• A bearish reversal pattern that forms after an uptrend
• Price tests the same resistance level three times and fails to break higher
• Indicates exhaustion in buying pressure
• Break of the neckline (support) confirms reversal

Triple Bottom

• A bullish reversal pattern that forms after a downtrend
• Price tests the same support level three times and fails to break lower
• Suggests sellers are losing control
• Break of the neckline (resistance) confirms breakout

Both patterns imply indecision and accumulation or distribution over time, often followed by a sharp breakout once the structure breaks.

Why These Patterns Work

• They represent clear market exhaustion at major levels
• Provide reliable risk-to-reward ratios due to clear structure
• Offer multiple entry points depending on the trader’s risk tolerance
• Widely recognised by institutions and retail traders alike, leading to self-fulfilling moves

How to Trade the Triple Top/Bottom Strategy

To trade these patterns effectively, follow a structured, confirmation-based approach.

1. Identify the Structure

Triple Top:

• Three peaks near equal highs with slight pullbacks in between
• Formed after a noticeable uptrend
• Price repeatedly fails to break resistance

Triple Bottom:

• Three lows at approximately the same level
• Appears after a downtrend
• Price fails to make a new low on multiple attempts

Use line charts or candle wicks to draw the key horizontal level more accurately.

2. Define the Neckline

The neckline is the horizontal level connecting the two lows (for triple tops) or highs (for triple bottoms) between the three peaks or troughs.

• This is your trigger line—a break confirms the pattern
• Price must close beyond the neckline for valid confirmation

3. Add Technical Confirmation

To reduce false signals, look for:

• Volume: Decreasing during the third peak/bottom, then surging on the breakout
• RSI or Stochastic Divergence: Momentum slowing despite similar price levels
• MACD: Crossovers or histogram shifts support reversal bias
• Reversal candlestick patterns: Pin bars, engulfing candles, dojis near the neckline

Confluence increases confidence in the trade setup.

4. Entry, Stop-Loss, and Take-Profit

Entry Options:

• Conservative: Wait for price to break and close beyond the neckline
• Aggressive: Enter on the third peak or bottom using candlestick reversal confirmation

Stop-Loss Placement:

• For triple tops: Above the third peak
• For triple bottoms: Below the third trough
• Or use the reversal candle’s high/low as your invalidation point

Take-Profit Targets:

• Measure the height from the neckline to the peak/trough and project it forward
• Fibonacci extensions (127.2%, 161.8%)
• Previous swing highs/lows or key levels

5. Trade Management and Re-Entry

• Trail your stop using moving averages or structural lows/highs
• Re-enter on a retest of the neckline if price pulls back after breakout
• Consider scaling out at key levels or using partial exits

Best Timeframes and Markets

Timeframes:

• 15M to 1H for intraday
• 4H and Daily for swing trades
• Weekly for long-term reversal zones

Markets:

• Forex (EUR/USD, GBP/JPY, AUD/USD)
• Commodities (gold, oil)
• Indices and stocks
• Cryptocurrencies (BTC, ETH)

Strategy Summary Table

Component	Triple Top	Triple Bottom
Pattern Direction	Bearish reversal	Bullish reversal
Entry Trigger	Break below neckline	Break above neckline
Stop-Loss	Above third peak	Below third trough
Take-Profit Target	Pattern height projected from neckline	Pattern height projected from neckline
Confirmation Tools	Volume, RSI divergence, MACD, candles	Volume, RSI divergence, MACD, candles

Conclusion: Trading Triple Top and Bottom Patterns with Confidence

The Triple Top and Triple Bottom Strategy offers a clear, structured way to catch major reversals before they fully unfold. These patterns represent emotional exhaustion and are often the result of large players shifting their positions. When confirmed with volume and technical confluence, they provide some of the best risk-reward setups in trading.

To learn how to combine these reversal patterns with a complete trading system, enrol in our expert-led Trading Courses at Traders MBA and gain the confidence to anticipate market turns with clarity.