Chart Pattern Triple Top

Triple Top is a reversal pattern formed by three consecutive highs that are at the same level (a slight difference in price values is allowed) and two intermediate lows between them. It is expected that after the price reaches the third high and then falls below the level of the intermediate low, then the fall will continue further by about the difference between the highs and lows.

The indicator searches for patterns on the last 600 bars. The pattern consists of lines indicating price movements (Price Line) and neck lines (Neck Line). The neck line is drawn along the smallest of the intermediate lows. The start and end points of each price line, except for the last one (point 7), are located in 5/5 pivots. Point 7 is located at the intersection of the last price line with the neck line. In the In Progress mode, the indicator looks for not only formed, but also emerging patterns. The third peak of such a pattern may not be in the pivot, and the price lines that form it will be dotted.

The pattern is considered formed when, after the appearance of the third peak, the price (close) falls below the neckline. The dotted horizontal line that ends with the Target label indicates the expected price level after the pattern has formed. As new bars appear, the line extends to the right until the last bar, until the pattern status changes from Awaiting to another. The label tooltip shows the price and the current status of the pattern. When the status changes, the color of the label also changes. There are 3 statuses in total:

  • Awaiting. The price did not reach the expected level and did not go above the last top.
  • Reached. The price reached the expected level.
  • Failed. The price did not reach the expected level and went above the last top.

If the indicator finds two intersecting patterns, then preference is given to the one whose status is Awaiting. If the status of the intersecting patterns is Failed or Reached or the status of both is Awaiting, then the chart will display the pattern whose vertex prices values are most similar, i.e. more accurate.

Inputs:

  • Trend Height – Sets the required height of the trend preceding the pattern relative to the height of the pattern itself. The height of the pattern is the difference in price between the maximum of the tops and the minimum of the intermediate lows. Percent value.
  • In Progress – Search for patterns that have not been fully formed yet.
  • Tops – The maximum allowable difference in tops heights. The height of the top is calculated from the minimum of the intermediate lows. Percent value.
  • Intermediate Minima – The maximum allowable difference in the depth of intermediate minima. The depth of the minimum is measured from the highest of the peaks. Percent value.