Trading the Triple Top Pattern

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The support line of the Triple Top pattern provides the trader with three critical pieces of information.

  1. It tells where to enter the trade (i.e., the breakout point).
  2. It is used in the calculation of the minimum price objective for closing the trade.
  3. It is used in the calculation of the stop-loss level.

Once the support line is decisively penetrated to the downside, CPR issues a sell-short signal at the open of the next day. The minimum downside price move is projected by measuring the average height of the three peaks to the support line and projecting this distance downward from the breakout point. The maximum downside price move is the low of the bar at the start of the prior uptrend.

If the minimum price objective is not met within a specific time period or if prices rally above the neckline then the pattern is cancelled. The minimum time period for the pattern to breakout is equal to the distance from the middle peak to the right peak projected from the right peak. The maximum time period for prices to reach the minimum price objective is equal to the distance from the left peak to the right peak projected from the breakout.

The min/max price objectives and stops are provided in the Expert Commentary (see page 27). Expert Alerts will also pop up and alert you on the breakout and exit days.

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Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.
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