COURSE ON GRAPHIC PATTERNS: MODULE 2: REVERSAL PATTERNS | DAY 9
TRIPLE TOP AND TRIPLE BOTTOM:
$4 Three Taps on One Level Two flaws alert. Three flaws confirm. The level simply won’t break.
THREE REJECTIONS
🔴TRIPLE TOP The price tests the same resistance three times and fails all of them. Three peaks at a similar level with two pullbacks between them.
A break below the support confirms a bearish reversal.
🟢TRIPLE BOTTOM The price tests the same support three times and holds in all of them. Three troughs at a similar level with two rebounds between them. A break above the resistance confirms a bullish reversal.
More touches mean a stronger level. When it finally breaks, the move is often powerful because many traders get trapped.
HOW TO TRADE THE THREE LEVELS:
$PROM ▪️ENTRY: Enter on the break of the level that held the three touches, confirmed by volume.
▪️STOP: Place the stop right after the three peaks or troughs. A return to that point means failure.
▪️TARGET: Measure the height of the pattern and project it from the breakout point.
DOUBLE VERSUS TRIPLE:
$CYS A triple is simply a double that went through an additional test. The extra touch makes the move stronger and the final breakout more reliable.
DAY 9 MAIN TAKEAWAYS
➔ Three tests of the same level
➔ More resistant than a double bottom or double top
➔ The breakout confirms the reversal
➔ Trapped investors fuel the move
Next: Day 10 | Rounding the top and bottom➡️
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