As of 04/17/2024
Indus: 37,753 -45.66 -0.1%
Trans: 14,987 -259.68 -1.7%
Utils: 853 +17.82 +2.1%
Nasdaq: 15,683 -181.88 -1.1%
S&P 500: 5,022 -29.20 -0.6%
|
YTD
+0.2%
-5.7%
-3.2%
+4.5%
+5.3%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/17/2024
Indus: 37,753 -45.66 -0.1%
Trans: 14,987 -259.68 -1.7%
Utils: 853 +17.82 +2.1%
Nasdaq: 15,683 -181.88 -1.1%
S&P 500: 5,022 -29.20 -0.6%
|
YTD
+0.2%
-5.7%
-3.2%
+4.5%
+5.3%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
Statistics updated on 8/27/2020.
Triple tops are chart patterns with performance toward the bottom of the list. The failure rate is higher than I like to see, and the average decline is meager.
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Encyclopedia of Chart Patterns
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Triple Top Chart Pattern
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The above numbers are based on 1,964 perfect trades. See the glossary for definitions.
| Characteristic | Discussion |
| Price trend | Upward leading to the pattern. |
| Shape | Three peaks near the same price with a downward breakout. |
| Middle peak | Sometimes the middle peak is priced marginally below the other two. |
| Volume | Trends downward 62% of the time, but is usually high beneath formation of each peak. |
| Bear market | More triple tops appear in bear markets than in bull markets. |
| Confirmation | The pattern becomes valid when price closes below the lowest valley in the pattern. |
| Trading Tactic | Explanation | 
The Measure Rule
Peaks
|
| Measure rule | Compute the height from the highest peak (point B in the Measure Rule figure to the right) to the lowest valley (A) and then multiply it by the above 'percentage meeting price target.' Subtract the result from the lowest valley (A) to get a price target (C). | |
| Price reversal | Price must have something to reverse, so if the rise leading to the pattern is small, expect a small decline. | |
| Confirmation | Wait for price to close below the lowest valley (confirmation, point A in the Measure Rule figure to the upper right) before placing a trade. | |
| Peaks | When the last peak (point B in the Peaks figure to the right) is below the middle one (A), then expect a stronger decline. A lower top suggests weakness as price attempts to make a new high but fails. | |
| Price velocity | A high velocity rise leading to the pattern often results in a larger decline post breakout. | |
| Yearly low | Patterns in the lowest third of the yearly price range perform best. | |
| Volume trend | A downward volume trend suggests better post breakout performance, but differences are minor (one percentage point). | |
| Pullbacks | Pullbacks hurt post breakout performance. |
The above figure shows an example of a triple top chart pattern with tops at 1, 2, and 3. Price does not rise far leading to the triple top and the decline after the triple top confirms (price closes below the blue confirmation line) is not that large either. A pullback sees price rise up to the confirmation line before resuming the decline.
-- Thomas Bulkowski
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