Introduction

Triple Top and Triple Bottom are not just simple candlestick patterns; at an advanced level, they reflect the battle between buyers and sellers around liquidity zones. Combined with SMC, you can distinguish a real reversal from a liquidity trap.

Structure and Identification

Triple Top: three roughly equal highs at resistance, with a neckline connecting the intervening lows.

Triple Bottom: three roughly equal lows at support, with a neckline connecting the intervening highs.

The three swings do not have to be perfectly equal, but they must form a confined price zone showing exhaustion of the dominant side.

The diagram below illustrates a triple-top structure with a sloped neckline:

Confirmation via CHoCH and BOS

In SMC, the three-touch shape is only the initial condition. The key is market structure shift:

When price prints a third high and then breaks the nearest higher-low, a bearish CHoCH forms. This is the reversal confirmation.

Trading before this confirmation is dangerous because the pattern can become accumulation and break upward.

Optimizing Entry with FVG and Order Blocks

After CHoCH appears, look for an imbalance zone (FVG) or order block to enter with a tight stop. A pullback into these zones usually provides a better entry than chasing the breakout.

Trading Strategies

Simple breakout: wait for a candle close below neckline, enter at market, stop above the third high.

Pullback: wait for price to retest FVG/order block, enter after rejection signal such as pin bar or bearish engulfing.

Early entry: if the third high coincides with a bearish pin bar at a supply zone, scale in a small portion before CHoCH, then add after confirmation.

Real-World Example

Assume EURUSD on H4 rallies into supply at 1.1050 three times. On the third touch, a bearish pin bar appears; then price breaks the nearest higher low, forming a bearish CHoCH. The trader waits for a pullback to the FVG at 1.0980, goes short with a stop above the third high, and targets the nearest support.

Common Mistakes

Entering too early without CHoCH and getting stopped out.

Placing take profit at the neckline and locking in tiny profits.

Confusing Triple Top with accumulation: without CHoCH, price can break higher.

Ignoring overall context, liquidity pools, and higher timeframe structure.

Conclusion

Triple Top/Bottom become powerful reversal patterns when confirmed by CHoCH and combined with FVG/order block entries. Let structure guide your entries, never guess the exact top or bottom.

Content is for reference only, not investment advice. Forex trading carries high risk.

Triple Top & Bottom – Advanced Price Action Reversal