A bearish reversal pattern where price tests the same resistance level three times but fails to break higher, followed by a breakdown below support that confirms strong selling momentum and trend reversal.
✳️ Pattern Formation
- Forms after a sustained uptrend where price struggles to move past a resistance level
- The three peaks form as repeated failed attempts to break the resistance
- Completion occurs when price breaks below the neckline, confirming reversal
🔷 Characteristics
- Three peaks form at roughly the same resistance level
- Neckline connects the lows between the peaks and acts as support
- Volume tends to decline with each successive peak, showing weakening demand
- Breakdown below neckline confirms the bearish shift
🌐 Market Condition
- Ideal in equity markets, indices, and commodities near major resistance zones
- Most effective in liquid instruments during trend exhaustion phases
🎯 Trading Strategy
- Enter short when price breaks below the support line with strong volume.
- Place stop-loss slightly above the third peak to limit risk.
- Target is measured by subtracting the pattern height from the breakdown level.