the hAnDbook of teChniCAl AnAlysisfigUre 13.18 A Minimum One‐to‐One Downside Projected Price Target for a Double
Top and a Horizontal Channel Formation on the Daily Chart of Delcath Systems Inc.
Courtesy of Stockcharts.com
triple top formation is completed once the lowest trough between the first and
last peak in a triple top formation is violated. In similar fashion, a triple bottom
formation is completed once the highest peak between the first and last trough
in a triple bottom formation is violated. The price level associated the comple-
tion of a triple top and bottom formation is referred to as the validation level.
The formation is considered tentative until the validation level is violated. Vol-
ume should be lighter on both the second and third peaks in a triple top forma-
tion and lighter on the second and third troughs in a triple bottom formation.
Volume should ideally begin to increase on breakout. The minimum one‐to‐one
figUre 13.17 Various Double Top and Bottom Formations on the Daily Chart of
EURUSD.
Source: MetaTrader 4