top of page

Double & Triple Tops and Bottoms

Recognizing Major Reversal Patterns

Reversal patterns help traders spot when a trend may be nearing exhaustion and preparing to change direction.
Two of the most reliable and widely used reversal formations are Double Tops/Bottoms and Triple Tops/Bottoms.

 

These patterns appear across all timeframes—1-minute scalps, intraday charts, swing trades, and even long-term investing.

​

Their strength comes from repeated failed attempts to break a key level, which signals a potential shift in market sentiment.

 

Double Bottom Pattern (Bullish Reversal)

A double bottom is shaped like the letter W.
It forms when a stock makes:

  1. A strong drop into a new low

  2. A bounce into resistance

  3. A retest of the same low

  4. A breakout above the bounce high

This pattern signals that sellers failed twice to break the support

level, and buyers are stepping in aggressively.

​

Key Characteristics

  • Two distinct lows at roughly the same price

  • A middle peak between the lows

  • Support holding firmly on the second test

  • Breakout confirmed when price exceeds the middle peak

 

Why It Works

The second bounce often attracts heavy buying because traders view it as a confirmation that the low is being defended.
The steeper and more aggressive the second drop, the stronger the rebound tends to be.

 

Triple Bottom Pattern (Stronger Bullish Reversal)

A triple bottom is similar to a double bottom but includes three tests of the same support level.

This pattern represents a more powerful reversal because:

  • Sellers failed three separate times to break support

  • Each retest traps more short sellers below the level

  • Breakout often leads to a sharp uptrend due to momentum + short covering

 

Structure

  1. First bounce off support

  2. Second bounce retests the support

  3. Third bounce confirms buyer strength

  4. Breakout above previous peaks begins a trend reversal

 

Triple bottoms produce some of the best reversal moves because they show persistent accumulation.

image.png

​

Double Top Pattern (Bearish Reversal)

A double top is shaped like an M and signals that buyers

are losing strength.

The pattern forms when:

  1. Price pushes to a high

  2. Pulls back

  3. Retests the same high

  4. Fails and breaks below the pullback valley

 

Key Characteristics

  • Two peaks at nearly the same level

  • Buying pressure weakens on the second test

  • Breakdown confirms the new bearish trend

 

Psychology Behind the Pattern

When buyers cannot break a high twice, confidence falls.
Sellers step in, longs exit positions, and the breakdown accelerates.

​

Triple Top Pattern (Stronger Bearish Reversal)

A triple top adds a third failed breakout attempt, making it a more powerful bearish signal.

Why It’s Stronger

  • Buyers fail three times at the same resistance

  • Each failure traps more longs at the top

  • Breakdown triggers both long exits and short entries

  • Often leads to a deeper, more aggressive decline

 

Structure

  1. First peak → rejection

  2. Second peak → rejection

  3. Third peak → final rejection

  4. Break below the valleys → trend reversal

Triple tops often form at the end of strong uptrends and signal exhaustion.

 

Pattern Reliability & Tips

To increase success with these patterns:

✔ Look for clear, distinct peaks or troughs
✔ Combine with volume:

 

High volume on breakout = strong confirmation
✔ Patterns on higher timeframes carry more weight
✔ Avoid patterns that look “too tight”—you want clean symmetry
✔ Use support/resistance levels for stop placement

These patterns become extremely powerful when combined with EMAs, VWAP, trendlines, and momentum indicators.

 

Key Takeaways

  • Double bottoms/tops = 2 tests of support or resistance

  • Triple bottoms/tops = 3 tests → stronger reversal signal

  • W-shaped = bullish reversal

  • M-shaped = bearish reversal

  • Confirmation comes from the break of the middle structure

  • More tests = stronger breakout or breakdown

​

Pro Tips - Double & Triple Tops

  • A Double Top becomes significantly stronger when the second top forms on lower volume.

  • Triple Tops often signal trend exhaustion — momentum usually weakens before the breakdown.

  • The best Double/Triple Top breakdowns happen when price rejects the neckline on a retest.

  • Look for confirmation from indicators like EMA9/EMA20 — if both are curling down, the reversal is stronger.

  • A wick into the resistance zone (fake breakout) often leads to a sharper, cleaner breakdown.

  • Identify whether the tops form under a major daily/weekly resistance level — those breakdowns have the highest follow-through.

​

Pro Tips - Double & Triple Bottoms

  • A Double Bottom is strongest when the second bottom forms on higher buying volume.

  • Triple Bottoms often indicate accumulation — watch for higher lows on micro-timeframes.

  • The safest confirmation is when price breaks above the neckline and retests it as support.

  • If the second bottom forms with a long lower wick, it shows strong buyer absorption.

  • Combine Double/Triple Bottoms with VWAP reclaim or EMA20 reclaim for powerful long entries.

  • Check for the pattern forming at a major higher-timeframe support level — these produce explosive reversals.

image.png
bottom of page