Triple Top Reversal pattern
Triple Top Reversal pattern The Triple Top Reversal is a bearish reversal pattern typically found on bar charts, line charts and candlestick charts. There are three equal highs followed by a break below support. As major reversal patterns, these patterns usually form over a 3 to 6 month period. Note that a Triple Top Reversal on a bar or line chart is completely different from Triple Top Breakout on a P&F chart.. Namely, Triple Top Breakouts on P&F charts are bullish patterns that mark an upside resistance breakout. We will first examine the individual parts Of the pattern and then look at an example.Prior Trend: With any reversal pattern, there should be an existing trend to reverse. In the case of the Triple Top Reversal, an uptrend should precede the formation. Three highs: All three highs should be reasonably equal, well spaced and mark clear turning points to establish resistance. The highs do not have to be exactly equal, but should be reasonably equivalent to each other. After the third high, an expansion of volume on the subsequent decline and at the support break greatly reinforces the soundness of the pattern. Supporting: As with many other reversal patterns, the Triple Top Reversal is not complete until a support break. The lowest point of the formation, which would be the lowest of the intermittent lows, marks this key support level. Support Turns Resistance: Broken support becomes potential resistance, and there is sometimes a test of this newfound resistance level with a subsequent reaction rally. Price Target: The distance from the support break to the highs can be measured and subtracted from the support break for a price target. The longer the pattern develops, the more significant the ultimate break. Triple Top Reversals that are 6 or more months old Major tops and a price target is less likely to be effective. Throughout the development of the Triple Top Reversal, it can start to resemble a number of other patterns. Before the third high forms, the pattern may look like a Double Top Reversal. Three equal highs can also be found in an ascending triangle or rectangle. Of these patterns mentioned, only the ascending triangle has bullish overtones; the others are states until a break occurs. In this same vein, the Triple Top Resal should also be treated as a neutral pattern until a breakdown occurs. The inability to break above resistance Is bearish, but the bears have not won the battle until support is broken. Volume on the last decline off resistance can sometimes yield a clue. If there is a sharp increase in volume and momentum, then the chances of a support break increase.Forex signalsتوصيات الفوركس Past performance is not an indicator of future results from free forex signalsتوصيات الفوركس مجاناHttps://www.freeforex-signals.com/ar/
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