Today I want to share with you a technical analysis figure called TRIPLE TOP.
This figure occurs quite often and brings excellent profits.
How does it look?
The figure looks like three highs, roughly at the same level.
These peaks form because the forces of the buyers are running out and with each new peak, the bears get stronger.
Very often, the third peak will be higher than the previous two – this is the last gasp of buyers, before capitulation.
How to negotiate?
The main criterion is the formation of three peaks, after a strong uptrend.
After that, the price makes the last push (the third spike) and breaks the support.
This breakout is the first possible entry point.
Often you will see the price retest the level, after which it goes down.
The second possible entry point will be this new level test.
To calculate the potential profit pointyou need to measure the height from the minimum to the maximum of the vertices.
This value, plotted below the break, will be a potential profit point.
The stop loss is set above the maximum of the vertices.
The figure is very profitable and is often found.
Also, you can find a triple bottom on the chart, which trades in the same way as a triple top, only in the opposite direction.
Very often after a triple top a strong downtrend starts and holding a part of the position can lead to big profits.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I’ll be happy