POINT AND FIGURE LIBRARY

The Chart Formations
The Triple Top

This formation and its variations are very important. When the market is repelled twice at the same level it is plain that a level of resistance is established When it breaks through the resistance on a third (or fourth or subsequent) occasion, you could not wish for a clearer demonstration of disequilibrium.

Michael Burke is of the view that whilst triple tops used to be the strongest buy signals in the 1950s –1970s, they can’t now be said to be any better than double tops. I must confess that is not my experience. I’m still very happy with this formation.

The converse formation is the triple bottom.

The triple top and triple bottom have many variant formations, which are set in the next section.

Next: The Ascending Triple Top and Descending Triple Bottom

Back to Table of Contents