Technical Analysis

Triple tops & triple bottoms

1

Triple tops and triple bottoms are very similar to the head & shoulder patterns.The simple difference is that triple tops and bottoms are formed with three triangles that are of equal height.

2

This is clearly different from head & shoulders, which requires one larger triangle to be formed in the middle. The triple top and bottom patterns are interpreted in the same way as head & shoulder patterns.

3

When a triple top is formed, it is assumed that the market will go down. Likewise, when a triple bottom is formed, it is assumed that market will go up.

4

Triple tops and triple bottoms are not seen regularly in the stock market as they signify the reversal of a trend. This doesn’t happen often as up or down trends can last for several months, if not years.

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