The identification of a triple top in Candlestick can be made from the following aspects:
- Morphological features
- Three peaks are close in height: The three peaks of a triple top should generally be on the same horizontal line, with a difference not exceeding 3%. The second peak should not be too high, otherwise it may form a head and shoulders top.
- There should be a gap between the peaks: there should be a certain gap between the three peaks, generally the gap between two peaks should reach more than 5 Candlesticks, and if it is less than 5, it will affect the accuracy of the judgment.
- Occurrence Location: A triple top generally appears at a high position during an uptrend, serving as a reversal pattern at the end of a bullish trend. If it appears at a low position or during an upward movement, it should not be operated based on the triple top pattern.
- Volume Changes: Typically, in a triple top pattern, the volume at the first peak may be the largest, followed by the second peak's volume, and the third peak's volume is the least, showing a clear contraction in volume. When the volume at the third peak is very small, it indicates signs of a potential decline.
- Neckline position: The neckline of a triple top is the line connecting the two low points formed during the pullbacks of the three peaks. When the stock price effectively breaks down through the neckline, the triple top pattern is confirmed. After breaking down through the neckline, the minimum decline is the vertical distance from the peak to the neckline.
- Time Span: The formation time of the three points of a triple top usually exceeds 2 months; the longer the time, the more reliable the triple top pattern.
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The identification of a triple top in Candlestick can be made from the following aspects:
- Morphological features
- Three peaks are close in height: The three peaks of a triple top should generally be on the same horizontal line, with a difference not exceeding 3%. The second peak should not be too high, otherwise it may form a head and shoulders top.
- There should be a gap between the peaks: there should be a certain gap between the three peaks, generally the gap between two peaks should reach more than 5 Candlesticks, and if it is less than 5, it will affect the accuracy of the judgment.
- Occurrence Location: A triple top generally appears at a high position during an uptrend, serving as a reversal pattern at the end of a bullish trend. If it appears at a low position or during an upward movement, it should not be operated based on the triple top pattern.
- Volume Changes: Typically, in a triple top pattern, the volume at the first peak may be the largest, followed by the second peak's volume, and the third peak's volume is the least, showing a clear contraction in volume. When the volume at the third peak is very small, it indicates signs of a potential decline.
- Neckline position: The neckline of a triple top is the line connecting the two low points formed during the pullbacks of the three peaks. When the stock price effectively breaks down through the neckline, the triple top pattern is confirmed. After breaking down through the neckline, the minimum decline is the vertical distance from the peak to the neckline.
- Time Span: The formation time of the three points of a triple top usually exceeds 2 months; the longer the time, the more reliable the triple top pattern.