The Price Oscillator & Triple Top: The Hidden Formula That Outsmarts the Market

The Dirty Secret of Price Oscillators (That Most Traders Ignore)

Most traders treat the price oscillator like a magic eight ball—shaking it, staring at the numbers, and hoping for answers. But let’s be real: unless you understand what’s happening under the hood, you’re just tossing darts in the dark.

The price oscillator is not just a fancy indicator that oscillates between overbought and oversold levels—it’s actually a powerful weapon when wielded correctly. Instead of using it in the usual, predictable ways, let’s dive into the hidden techniques that make this tool an elite trading powerhouse.

Triple Tops: The Ultimate Fake-Out Formation

You’ve seen it before. Price hits a resistance level, pulls back, comes back up, and tests it again. By the time the third test happens, retail traders are either shorting hard, convinced of a breakdown, or trying to buy a breakout.

Big mistake.

A triple top is where market manipulation meets mass confusion. But what if I told you that by combining the triple top with the price oscillator, you could front-run the market like a pro? Let’s break it down.

Why Most Traders Lose Money on the Triple Top (And How You Won’t)

Picture this: You’re at a buffet. There’s a tray of shrimp, and the first time you go for it, it’s full. The second time? Still good. But by the third time, it’s been picked apart, and you’re staring at a sad, overcooked shrimp. That’s exactly what happens with resistance levels in a triple top formation.

Here’s the ugly truth:

• Retail traders assume the third top means a reversal is coming.
• Institutions use the third test to lure in breakout traders.
• The actual price move is dictated by hidden momentum, not the chart pattern itself.

Solution? Use the price oscillator to confirm whether the breakout is real or just another fake-out.

The “Triple Top + Price Oscillator” Strategy for Maximum Edge

Instead of blindly trading triple tops like a rookie, let’s add an advanced filter—momentum confirmation via the price oscillator.

Step 1: Identify the Triple Top Setup

• Look for a price structure where resistance has been tested twice already.
• If price approaches the resistance for the third time, prepare for confirmation—not assumption.

Step 2: Analyze the Price Oscillator

• If the oscillator shows decreasing momentum on the third test, it’s a fake breakout—prepare to short.
• If the oscillator confirms strong momentum, it’s a true breakout—get ready to buy the breakout pullback.

Step 3: Wait for Institutional Confirmation

• The best trades trigger when institutions confirm liquidity grabs.
• Watch for sudden wicks beyond resistance—if price spikes up and then collapses, the breakout was a trap.
• If price retraces but holds above resistance, the breakout is likely real.

Real-World Case Study: How a Triple Top Faked Out the Masses

Let’s take a real-life example from EUR/USD in late 2023. The pair formed a classic triple top at 1.1000, and retail traders flooded in with shorts.

But guess what?

• The price oscillator showed increasing momentum on the third test.
• Instead of reversing, price blasted through resistance and never looked back.
• Smart traders who used the oscillator confirmation bought the breakout and rode the trend for 150+ pips.

Moral of the story? Price patterns lie, but momentum never does.

The One Indicator That Separates Pros from Amateurs

Using only a chart pattern without confirming underlying momentum is like judging a book by its cover—without checking if there are even words inside.

Actionable Takeaway:

• Before trading a triple top, always check the price oscillator’s momentum.
• If momentum weakens, prepare for a fake breakout.
• If momentum increases, trade the real breakout with confidence.

Final Thoughts: Where to Find the Best Trading Tools

The combination of triple tops and the price oscillator is one of the most underutilized yet powerful trading tactics out there. But don’t stop here—get access to real-time trading insights, expert strategies, and powerful tools to level up your trading game:

• Stay ahead of market moves with real-time economic indicators: Forex News Today
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• Join an elite community of traders for daily signals and pro insights: StarseedFX Community
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• Optimize your trading with automation: Smart Trading Tool

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Image Credits: Cover image at the top is AI-generated