Triple Top or Triple Bottom
Triple tops (or bottoms) are identified by three peaks (or troughs) of similar height.
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Targets are measured in a similar fashion to Double Tops and Double Bottoms and they are traded in the same manner.
For a triple top, volume is high on the first peak and low on the third. There is an increase in volume on the second trough and a sharp increase at the breakout.
A triple bottom requires high volume on the first trough reducing to low volume on the third. Volume increases on the second peak and again on the breakout.
Go short on a break below the support line.
Place a stop-loss just above the last peak.
Price often rallies back to the support line which then acts as a resistance level. Go short on a reversal signal and place a stop-loss just above the resistance level.
Go long on a break above the resistance line.
Place a stop-loss just below the last trough.
Price often corrects back to the resistance line which then acts as a support level. Go short on a reversal signal and place a stop-loss just below the support level.