In technical analysis, a situation in which a security peaks at roughly the same price three times in a relatively short period. That is, the price peaks and then drops back down, which is then repeated twice. Technical analysts consider a triple top a bullish signal if the price continues to rise following the third peak. However, if the price drops significantly after the third peak, it is seen as a bearish indicator.
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In technical analysis, a chart pattern that indicates that a stock or a market index has attempted to penetrate an upper price level on three different occasions. If the stock price or index actually breaks through on the upside during the third attempt, it is a bullish signal. If the stock price or index fails on the third attempt and pulls back, it is a bearish signal. Compare triple bottom.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.