Triple Top Pattern, Drawn on Live Gold Candles

What it shows

A coloured line through the six swing points, a dotted flat neckline that runs to the breakout candle, a light fill, the pattern name above the middle top, and a dotted target line ending in a Target label.

How Pravex works it out

1. Pravex works on swing points from the latest 600 candles. A swing low is a low under the 5 lows before it and not above the 5 lows after it, and a swing high mirrors it. Nothing can be called a swing until those 5 later candles exist. Where two lows (or two highs) follow each other, only the deeper low (or the higher high) is kept, which leaves a clean high, low, high sequence.
2. The pattern uses six alternating swings: the low where the lead-in starts, then the three peaks with the two dips between them. The three highs are the tops. The neckline is a flat line at the lower of the two dips, and the height is the highest top minus the neckline.
3. The tops may differ (highest minus lowest) by no more than the Peak spread share of the height, and the two dips by no more than the Dip spread share. Before the first top there must be a real climb: the rise from the first low to the first high has to reach the Lead-in strength share of the pattern’s height, and the neckline has to sit above that starting low.
4. Breakout: the first candle after the third top that closes under the neckline. Target: the neckline minus the height. Failure level: the highest top, with no extra allowance; a high above it before the break drops the shape.
5. Four statuses follow the breakout. Awaiting means neither the target nor the failure level has been hit yet. Reached means a high or low got to the target first, Failed means the failure level gave way first, and Indefinable means both fell inside one candle, so their order is unknown.

Settings

Setting	Default	What changing it does
Which patterns to keep	All	A status filter. All draws every pattern found; the other three remove patterns by status: Failed and Indefinable ones go with Awaiting and Reached, everything but Awaiting goes with Only Awaiting, and Last Awaiting keeps a single one, the latest Awaiting pattern.
Where targets are drawn	Only Awaiting	Turns the dotted target and its label on by status: for every pattern (All), for Awaiting ones only, for Awaiting and Reached ones, or for none. The pattern shapes are not affected.
Lead-in strength	50	The minimum size of the climb into the first top, in percent of the pattern’s height. 50 asks for a lead-in at least half as tall as the pattern; a higher number wants a more obvious rally first, a lower one lets weaker lead-ins through.
Peak spread	10	How far apart the highest and lowest of the three tops may be, as a percent of the pattern’s height. At 10, tops within a tenth of the height of each other count as level.
Dip spread	20	How far apart the two dips between the tops may be, as a percent of the height. Raise it to accept a pattern whose dips are uneven.
Show unconfirmed patterns	off	Default off: a shape shows up once a close has gone through its breakout line. Switch it on to see shapes forming before that, with a dotted final leg ending at the running extreme since the last confirmed swing, which keeps moving, and the target the shape would carry.

How traders read it

A triple top reads as buyers failing three times at one level, which is a stronger statement than two; the close under the lower dip is the confirmation. Measure the height and subtract it from the neckline: that is the target.

A hypothetical with round numbers: the tops sit near 110 and the dips at 101 and 100. The neckline is 100 and the height 10, so a close under 100 puts the target at 90.

When it misleads

Three level tops are rare on a single chart, and the six-swing setup needs room, so you will see far fewer triple tops than double tops. The same level can also be a ceiling that breaks on the fourth try. Two things can still redraw a pattern after it appears. A newer swing that goes further than the last one of its kind takes its place, and a breakout on the candle that is still open counts only if the close holds. Unconfirmed shapes move all the time, since their last point is the running extreme.

Questions and answers

How does Pravex tell a triple top from a double top?

A triple top needs three peaks with two dips between them, inside the Peak spread and Dip spread tolerances. Where both fit, the larger shape stays when the All Chart Patterns indicator draws them together.

What is the triple top neckline?

A flat line at the lower of the two dips between the peaks.

Where is the triple top target?

The pattern’s height below the neckline, measured from the neckline price.

How far apart can the three tops be in time?

There is no spacing rule. Only the price tolerances apply, and all six swings must fall inside the last 600 candles.

Related: Triple Bottom Chart Pattern, Double Top Chart Pattern, Head and Shoulders Chart Pattern, All Chart Patterns, every indicator.