The Triple Top and Triple Bottom are extensions of the Double Top/Bottom patterns. Three tests of the same level with three rejections provides even stronger confirmation that the market has firmly rejected that price. While less common than double tops/bottoms, they carry more conviction when they do form.
Triple Top and Triple Bottom Diagrams
Triple Top vs Double Top
| Feature | Double Top | Triple Top |
|---|---|---|
| Number of tests | 2 | 3 |
| Formation time | Shorter | Longer |
| Signal strength | Strong | Stronger |
| Frequency | Common | Less common |
| Target calculation | Pattern height from neckline | Pattern height from neckline |
Why Three Tests Make it Stronger
Each failed attempt at resistance adds more sellers to the market at that level. By the third test, a large number of sellers have placed orders at resistance, and those who bought the second test are now sitting at breakeven — ready to sell on another failure. This creates overwhelming selling pressure at the third test.
Trading the Triple Top
Entry: Short when price breaks below the neckline (lowest valley between the three tops)
Stop Loss: Above the third top (tightest stop) or above all three tops
Target: Neckline − pattern height (same calculation as Double Top)
Key difference from Double Top: The neckline may not be perfectly flat — draw it connecting the two valleys between the three tops
Stop Loss: Above the third top (tightest stop) or above all three tops
Target: Neckline − pattern height (same calculation as Double Top)
Key difference from Double Top: The neckline may not be perfectly flat — draw it connecting the two valleys between the three tops
On NSE, Triple Tops often form at psychological round number resistance levels — NIFTY at 25,000, a stock at ₹500, ₹1,000 etc. The round number acts as a ceiling that repeatedly repels price. When the third test fails and neckline breaks, the pattern is very reliable.
The pattern is only complete when the neckline breaks. Three equal highs without a neckline break is just resistance — not a confirmed Triple Top. Many stocks form three peaks and then eventually break higher — the neckline break is non-negotiable.