How To Trade the Triple Top Stock Chart Pattern

The Triple Top is a reversal pattern that forms from a previous up-trend.  This is a bearish pattern.

What happens is we have an uptrend, hit a top, it does down, it hits the top again, goes down, and then hits a top for a third time – the chart somewhat resembles the letter “W”.

Once the stock breaks support (the bottoms of the “W”, we can then begin to sell it short.

Look for Volume

To ensure we’re looking at a triple-top chart pattern, we also want to see high volume at the tops, and then a huge increase in selling volume once it breaks support to the down side.

A Triple Top is a 3-6 month time horizon