Study the triple top as a defined sequence of swings, then record both confirmed and failed exits with the same rules.
Identify the swings and the boundary
A triple top revisits roughly the same resistance zone on three separate swings. Two reaction lows divide those peaks. When those lows differ, write which one governs confirmation; the lower low is the conservative horizontal boundary used here.
Read the formation in its preceding trend
The reversal case follows an advance. Repeated resistance tests indicate that price has paused, but continued demand can eventually push through the zone. Treat the pattern as developing until the reaction-low boundary breaks.
Use an explicit confirmation rule
The downward example closes below 64, the lower intervening trough. A close below 64.5 alone would not satisfy this stated rule. Subsequent recoveries can retest the old support, but a retest is an observation rather than a prerequisite for every completed top.
| Measure | Value |
|---|---|
| Confirmation session (first bar is session 1) | 49 |
| Boundary | 64.00 |
| Confirming close | 63.00 |
| Formation extreme | 72.00 |
| Formation height | 8.00 |
| Geometric objective | 56.00 |
Height = |72.00 − 64.00| = 8.00
Objective = 64.00 − 8.00 = 56.00The objective illustrates a measuring convention. It supplies no probability, expected return or evidence that a trade reaches that price. Keep the projected level separate from the actual chart observations and from a written risk plan.
Compare volume on the same daily basis
Compare each swing and the confirming session with this stock’s own daily volume. Quiet activity around a base and expansion on an exit are conventional context, but they do not establish direction or identify who traded. An event can dominate a single volume bar.
| Measure | Value |
|---|---|
| Confirmation volume | 220.00 |
| 20-session average including confirmation | 106.80 |
| Relative volume | 2.06× |
Including the current session in the average differs from dividing by the prior 20 sessions. An intraday comparison at the same clock time uses another denominator. State which one you use before comparing examples.
An exit that does not persist
The alternative path breaches the reaction-low area, then recovers and clears the three highs. That upward resolution invalidates the bearish structure. Retain it when studying false breaks of repeatedly tested levels.
Distinguish nearby formations
A head and shoulders has a higher middle peak. A double top has two distinct peaks. A rectangle can include three highs but need not have the preceding rise or reversal interpretation.
Keep a reproducible research record
Apply the same swing definition and boundary rule to every chart in a sample. Formations become visible as later bars confirm swings, so preserve the date on which each observation was knowable.
- Record the preceding trend, candle interval, price scale and corporate-action basis.
- Label the swings and write a boundary rule before viewing the later path.
- Record the confirming close, subsequent retest and the price that invalidates the premise.
- Compare volume on a named denominator and retain failed exits as well as resolving examples.
- Review earnings and other events, execution costs and gap risk separately from the geometric drawing.
These formations are studied by reading charts. A list of stocks near a high or low does not identify this pattern.
Sources
- Edwards, Magee and Bassetti, Technical Analysis of Stock Trends, 11th edition: reversal formations and measurement conventions
- StockCharts ChartSchool: Triple top (checked October 1, 2026)
Read our data and methodology notes for calculation context. This guide explains research tools and observations. It does not recommend a trade or investment.