stephenleachman

TRIPLE TOPS & BOTTOMS (TREND REVERSAL)

FX:EURGBP   Euro Fx/British Pound
63 0 13
Triple tops and bottoms are trend reversal patterns. They start with a trend
that pushes into resistance or support and pulls back then make another attempt at the
high or low but fails to break it (At this point forming a double top or bottom) Price again,
for the third time pushed to the high or low and was resisted or supported forming the
triple top or bottom. Note that there's not always a double touch at the neckline with
this patterns Rather look for the lowest swing low in a triple top or the highest swing
high in a triple bottom to use as the neckline. once price breaks that swing low or high
then this pattern is confirmed as a reversal. Targets after a break is measured by the
the top or bottom to the neckline added to the breakout. I Personally don't play breakouts,
I always need to see price pullback and that pullback be support or resisted before trading
this pattern.

Conventional Way To Trade The Triple Top & Bottom Reversal:

snapshot

-----Triple Top Bearish Reversal-----
(1) Wait for a clear Triple Top to form.
(2) Wait for price to break and close below neck - lowest swing low.
(3) Sell pullback at neckline.
(4) Stop above the 50% retracement of top to neck. (this gives a 1-2 risk reward)
(5) Target Is the Distance Between The top to neck Added To The Breakout.

-----Triple Bottom Bullish Reversal-----
(1) Wait for a clear Triple Bottom to form.
(2) Wait for price to break and close Above neck - Highest swing high.
(3) Buy pullback at neckline.
(4) Stop below the 50% retracement of neck to bottom. (this gives a 1-2 risk reward)
(5) Target Is the Distance Between The top to neck Added To The Breakout.

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