📉 TRIPLE TOP PATTERN EXPLAINED
A Triple Top is a bearish reversal pattern that forms after a strong uptrend, signaling that buyers are losing control and sellers are preparing to take over.
Here’s how it develops:
1️⃣ First Top: Price reaches a resistance level and pulls back slightly.
2️⃣ Second Top: Price rallies again but fails to break the same resistance — showing selling pressure.
3️⃣ Third Top: Another attempt fails, confirming strong resistance and buyer exhaustion.
4️⃣ Neckline: The support level connecting the lows between the tops.
⚠️ Breakdown:
When the price breaks below the neckline with strong volume, it confirms a bearish reversal — usually leading to a downward move.
🧠 Psychology:
Each rally attempt is weaker than before as buyers lose strength and sellers gain confidence. When the neckline breaks, panic often fuels more selling.
🎯 Target:
The potential downside is roughly the distance between the neckline and the tops, projected downward from the breakout point.
⚡ Pro Tip:
Wait for a confirmed close below the neckline and volume spike before entering short — false breakouts can trap traders early.
