#1: Buyers are in control as the price makes a higher high, followed by a pullback.
#2: The first sign of selling pressure appears as the price fails to break out of the prior high. At this point, the market makes a pullback and forms a consolidation.
#3: Again, the market attempts to break out higher and fails, again. The 3 “spikes” are visible after 3 failed attempts to break out.
#4: The price breaks below the lows of the consolidation and the Triple Top Chart Pattern is completed.
You’re probably thinking…
“That’s easy! Let’s hunt for some Triple Top patterns and short the markets baby!”
Well, not so fast my young padawan…
Mistakes to avoid when trading the Triple Top chart pattern
Yes, the Triple Top chart pattern signals the sellers are in control, but it doesn’t mean you want to sell immediately.
Here’s why…
Mistake #1: When the pattern is obvious, it’s too late to enter
Here’s the deal:
When the Triple Top pattern looks obvious on the charts, it’s too late to short the markets.
Why?
Because you’ll likely short into an area of Support where potential buying pressure could push the price higher.
This means you’re selling when buyers are about to step into the markets — not a good idea.
Here’s what I mean…
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