Triple Tops and Bottoms Forex patterns strategy use by pro currency traders, A Triple Top pattern is similar to the Head and Shoulders pattern with only one difference that is the top position of the Triple top is at same or nearly same level but the three peaks are not at same level in the Head and Shoulders pattern because Head is at the higher position than the Shoulders. A Triple Top chart pattern consists of three peaks that are at the same or nearly same level. This chart pattern occurs in an uptrend of the Forex market. This chart pattern looks exactly as shown in the figure below.
Forex Triple Tops and Bottoms
How the Triple Top chart pattern forms and ends?
Price of the currency rises and reaches to the resistance level, retreat and touches the resistance level for the second time and then retreat again and finally touches the resistance for one more time that is the third time before returning and this is how the Triple Top chart pattern forms. This pattern is considered finish when the price of the currency declines below the lowest point of this chart pattern. This lowest low point of the chart pattern is also known as the confirmation point.
In the figure above, the points A, B and C are the three tops and the point D is the lowest low point where the price of the currency crosses the lowest point of the pattern. The resistance line is touched by the price for three times at point A, B and C so the Triple Top Chart Pattern forms and when the lowest point of this pattern is crossed at the point D then the pattern ends.
What Triple Tops and Bottoms chart pattern is used for ?
This chart pattern is used by the traders and investors to foretell the reversal of en existing prolonged uptrend. This pattern shows three attempts made by the price of the currency to break the resistance level but if it cannot break then it means that price cannot go above this level. Each failure of price to break the resistance level confirms the indication of reversal. Traders and investors prefer to enter a short position if the price of the currency goes lower than the identified support level because expert traders and investors see this pattern as a reliable pattern.
The Triple Bottom chart pattern is the reverse of the Triple Top Chart Pattern. This chart pattern looks exactly as shown in the figure below.
Triple Bottoms Forex Trading Pattern
How the Triple Bottom chart pattern forms and ends?
Just the reverse of Triple Top is the Triple Bottom chart pattern. This chart pattern is observed when three equal or nearly equal lowest price of currency are followed by a price breakout and this breakout occurs at above the resistance level. Price of the currency declines and reaches to the support level, retreat and touches the support level again for the second time and then retreat again and finally touches the support level for one more time that is the third time before returning and this is how the Triple Bottom chart pattern forms. If the price of the currency crosses the resistance level and goes above then this is the end of the Triple Bottom chart pattern.
In the figure above, the points A, B and C are the three lows and the point D is the highest high point where the price of the currency crosses the highest point of the pattern. The support line is touched by the price for three times at point A, B and C so the Triple Bottom Chart Pattern forms and when the highest point of this pattern is crossed at the point D then the pattern ends.
What Triple Tops and Bottoms chart pattern is used?
Just like Triple Top pattern, Triple Bottom pattern is also a long term pattern. This pattern shows three attempts made by the price of the currency to break the support level but if it cannot break then it means that price cannot go below this level. Each failure of price to break the support level confirms the indication of reversal. Finally when the resistance level is broken down then sometimes the resistance level of this trend may become the support level for the new trend. Forex traders and investors prefer to enter a long position if the price of the currency goes above the identified support level.