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Triple Top
The triple top is a stronger pattern than the double top in that it takes a little longer to develop meaning that there is a balance in the supply and demand relationship prior to the pattern being broken. We like to see balancing patterns broken in favor of demand because often times this is when a stock will make its strongest move. In the example above, it shows that the columns of Xs stop at $44 indicating that supply is strong there as the stock turns down from that level two times. The columns of Os stop dropping at $41 meaning demand is strong at that level supporting the shares. The balance pattern exists in the first four columns between $44 and $41. The third time demand lifts the stock up to $44 the supply is not present to push the stock down. When you are able to put an X in the $45 box during the third column of Xs the triple top is broken. The conclusion is that demand is taking over control and the balance is broken. A new trend is beginning. When a stock breaks a triple top, the probabilities are high that it will continue to advance. All the sellers at $44 have sold and removing that supply is like taking a lid off of the stock’s price.