Triple top buy signal

example 1

There are many examples of triple top buy signals on the chart.

This triple top buy signal has been registered after a small decline but there is overhead resistance nearby. The bearish resistance line has been exceeded which is a good sign. If the top row of Xs at row A can be exceeded then the resistance has been taken out and a good move might follow.

example 2

This example shows a triple top buy signal that has been registered shortly after the bearish resistance line was crossed. There is resistance overhead in this example but the signal looks good nonetheless.

example 3

After the low at (K, 4) a triple top buy signal was given along with the breakout above a short bearish resistance line. After this reversal the stock became very bullish and proceeded to register additional triple top buy signals as it rose. In using Japanese Kagi charts which are similar to point & figure, there is a rule that suggests that before a trend ends - there will be nine columns up that will make new highs above the recent highs. This stock has recorded 7 so far. I have observed this phenomenon quite a few times and after the stock has recorded 8 or more new highs it is probably best to anticipate a reversal of the uptrend.

By W. Clay Allen CFA