Three Mountain Top or Triple Top Candlestick Chart Pattern
The three mountain top or triple top occurs when prices attempt three different times to make a new high and fail.
Three Buddha Top or Head and Shoulders Pattern
The three Buddha top or the head and shoulders pattern is a specific form of the three mountain top where the middle attempt at a new high is higher than the first and third attempts at a new high. Nison (1991, p. 107) suggests that the third mountain of the pattern be confirmed with a bearish candlestick indicator.
Three River Bottom or Triple Bottom Candlestick Chart Pattern
The three river bottom or triple bottom occurs when prices attempt three different times to make a new low and fail.
Inverted Three Buddha or Inverted Head and Shoulders Pattern
The inverted three Buddha or inverted head and shoulder occurs when the middle attempt at lower prices is lower than the first and third attempts at lower prices. Nison (1991, p. 108) states that in order for the three river bottom or inverted three Buddha pattern to be confirmed, the peak of the troughs should be exceeded.
Three Buddha Top Chart Example
The chart above of the S&P 500 ETF (SPY) illustrates a three Buddha top. The main idea is that prices on the third buddha failed to make an equal or higher high than the middle Buddha. In fact bulls were unable to come close to the first or second Buddha high. Once prices fell below the lows between the first and second Buddha and the second and third Buddha (the lowest blue line on the chart), bulls were completely rejected and prices began to fall downward.
Inverted Three Buddha Bottom Example
The chart above of Hewlett Packard (HPQ) illustrates an inverted three Buddha bottom. The first low was created by a bullish counterattack line, the middle low was created by a hammer, and the third and final inverted Buddha was created by a bullish engulfing pattern. Once prices exceeded the peaks in between the first and second inverted Buddha and the second and third inverted Buddha, the inverted three Buddha bottom was confirmed.
- Nison, S. (2003) The Candlestick Course. Hoboken: John Wiley & Sons.
- Nison, S. (1994) Beyond Candlesticks: New Japanese Charting Techniques Revealed. New York: John Wiley & Sons.
- Nison, S. (1991) Japanese Candlestick Charting Techniques. New York: New York Institute of Finance.
- Rhoads, R. (2008) Candlestick Charting For Dummies. Hoboken: Wiley Publishing.
- ThinkorSwim. (2011). ThinkorSwim Resource Center: Candlestick Patterns Library.