PLAYBOOK #15 / 25
CHART PATTERNS
Triple Tops & Triple Bottoms: Multi-Touch Support & Resistance Exhaustion
Target Win Rate
66% - 72%
Target RRR
1:2.5 to 1:3.5
Execution Bias
LEVEL EXHAUSTION
Best Assets
Equities & Indices
1. The "Rule of Three Touches"
In institutional market microstructure, testing a horizontal barrier three times depletes available resting liquidity. On Touch 1, fresh institutional orders are filled. By Touch 3, limit orders have been absorbed, setting up a sharp structural breakdown through the support floor or ceiling.
2. Execution & Invalidation
Trigger: Confirmed close below the valley support line (Triple Top) or above the peak resistance line (Triple Bottom).
Stop Loss: Positioned on the opposite side of the third peak/trough.
Target: 100% of the pattern's vertical range projected from the trigger level.
INSTITUTIONAL TRADE SPECIFICATION
Asset: S&P 500 / SPX (1-Hour Chart) • Bias: Triple Top Reversal Short
Entry: 5,450.00 • Stop Loss: 5,485.00 (35.00 Pts Risk)
Target 1: 5,380.00 (1:2.0 RRR) • Target 2: 5,310.00 (1:4.0 RRR)
Entry: 5,450.00 • Stop Loss: 5,485.00 (35.00 Pts Risk)
Target 1: 5,380.00 (1:2.0 RRR) • Target 2: 5,310.00 (1:4.0 RRR)
Target Win Rate
65% - 72%
Target RRR
1:3.0+
Execution Bias
CONFIRMATION