Saturday, June 20, 2009 10:02:00 PM
Triple Top Pattern:
The triple top pattern is much like the Double Top Pattern, and it is suggested that you learn that pattern 1st.
The difference is that there is an additional peak before the final steep correction.
As with the double top, a price oscillation occurs when:
a) The price rises to the point that buyers lose interest. (Top #1)
b) Some investors take profits and a correction ensues.
c) The price stabilizes (Reaction low)
d) News, analyst upgrade, earnings report, etc., brings new interest.
e) Another 'top' offers those who missed the 1st one to sell. (Top #2)
f) Rinse and repeat.
Chart:
The triple top pattern is much like the Double Top Pattern, and it is suggested that you learn that pattern 1st.
The difference is that there is an additional peak before the final steep correction.
As with the double top, a price oscillation occurs when:
a) The price rises to the point that buyers lose interest. (Top #1)
b) Some investors take profits and a correction ensues.
c) The price stabilizes (Reaction low)
d) News, analyst upgrade, earnings report, etc., brings new interest.
e) Another 'top' offers those who missed the 1st one to sell. (Top #2)
f) Rinse and repeat.
Chart:
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