This pattern occurs when a series of 2 or more tops or bottoms is penetrated. Generally this is formed by 5 vertical columns, however it is possible for formation to be spread over multiple columns.
Triple Top:
If we consider each column as battle between buyers and sellers, then Triple Top requires 5 complete battles to form. In the first battle the buyers where dominating and taking the stock to level x. After reaching the price x, somehow the buyers are exhausted and sellers are strengthening which forms the second column or second battle. Again at sometime sellers will lose their strength and buyers will get upper hand and take the stock in the upper direction. Eventually buyers lose their hands at the same price level of x and give up their domination. That ends the third battle between the buyers and sellers. The fourth battle will be formed when sellers took the control and take the stock to lower level. The last and important battle will be formed when the buyers come in and the take the stock well above the previous resistance of price x.
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| Triple Top |
Point and Figure Triple Bottom is exactly opposite to Point and Figure Triple Top. If we consider each column as battle between buyers and sellers, then Triple Bottom requires 5 complete battles to form. In the first battle the sellers where dominating and taking the stock to level y. After reaching the price y, somehow the sellers are exhausted and buyers are strengthening which forms the second column or second battle. Again at sometime buyers will lose their strength and sellers will get upper hand and take the stock in the down direction. Eventually sellers lose their hands at the same price level of y and give up their domination. That ends the third battle between the sellers and buyers. The fourth battle will be formed when buyers took the control and take the stock in the upper direction. The last and important battle will be formed when the sellers come in and the take the stock well bellow the previous support of price y.
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| Triple Bottom |
