The triple top is a hybrid of the head-and-shoulders and double-top trend reversal formations. Conversely, the triple bottom is a hybrid of the inverse head-and-shoulders and double-bottom formations. Consequently, they have the same characteristics, potential problems, signals, and trader's point of view as the double top or double bottom, respectively.
A very reliable and common trend reversal chart formation is the double top. As the name clearly and succinctly describes, this pattern consists of two tops (peaks) of approximately equal heights. A parallel line is drawn against a resistance line that connects the two tops.
The Inverse Head-and-Shoulders formation is a mirror image of the head-and-shoulders pattern. Therefore, you can apply the same characteristics, potential problems, signals, and trader's point of view from the preceding presentation.
The head-and-shoulders pattern is one of the most reliable and wellknown chart formations. It consists of three consecutive rallies. The first and third rallies—the shoulders—have about the same height, and the middle one—the head—is the highest. All three rallies are based on the same support line (or on the resistance line in the case of the reversed head-and-shoulders formation), known as the neckline.