Price Patterns - Triple Top Signals End of Upside Move

The price chart of Harley-Davidson (HDI), the well-known motorcycle maker, shows a strong upside move from March 2003 through July 2004. The stock then peaked and traded sideways making three successive tops from July 2004 through February 2005. The triple top was followed by a very sharp decline in April 2005 prompted by an earnings warning. Next the stock rebounded temporarily only to move to the downside.

Multiple tops usually signal that prices are headed to the downside.

Related Articles:

Price Patterns - A Bubble Top Is an Extreme Pattern
Price Patterns - Bump and Run Reversal Top Defines Price Bubble
Price Patterns - A Double Top Signals a Downside
Price Patterns - Head and Shoulders Top Has Three Tops
Price Upsides Often Occur in Three Stages

Updated February 25, 2008.