For Business

Price Action

Triple Top and Triple Bottom Explained

A triple top is three highs at about the same price after a rise, with a close under the lowest dip between them; a triple bottom is the same upside down after a fall. This paper shows you a real triple top drawn from gold in the summer of 2023, how close three highs have to be, the triple top and a triple bottom on the daily chart with their necklines, and how to keep the lines with a template on your platform.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

This paper is locked

Read it in the browser and keep the PDF with Premium, or buy this one paper.

Buy this paper — $2Get Premium

Three tops

A triple top is three highs at about the same price after a rise, and a close under the lowest dip between them. Gold rose to 1983.38 on 2 June 2023, to 1984.38 on 18 July, and to 1982.16 on 27 July: three highs within 2.22 dollars of each other over eight weeks. Between them the price dipped, the lowest dip being 1892.83 on 29 June. On 16 August the day closed at 1891.25, under that dip. Three tops, two dips, and a close through the lower of the dips.

How close is the same

The word triple asks for three highs at about the same price, and about the same has to be given a size. On gold the three highs of 2023 sat within 2.22 dollars on a price near 2,000: about a tenth of one per cent. On a currency pair the same idea is a few pips. Put the three on one scale and they are three dots almost on one line; that is what three highs at the same price looks like when the scale is stretched.

This paper is locked

Read next