What is Three Tap?

The term "Three Tap" is a term used in technical analysis to refer to a specific pattern on price charts. This pattern involves three separate price touches and usually signals a trend reversal. A Three Tap pattern occurs when the price touches a specific support or resistance level three times.


**Features of Three Tap pattern:**


**Three Price Touches:**
The pattern forms when the price touches a specific support or resistance level three times. Each touch strengthens the formation of the pattern.


**Horizontal Movement:**
The price usually follows a sideways movement as it approaches the same support or resistance level three times. This could indicate that the price is stalling at a certain level and losing momentum.


**Trend Reversal Sign:**
The Three Tap pattern may indicate trend reversals. For example, in an uptrend, the Three Tap pattern often signals the beginning of a downtrend.

**Reliability:**
The Three Tap pattern can become more reliable when used in conjunction with other technical analysis tools and indicators. Support or resistance levels as well as volume analysis and other price action indicators can increase the reliability of the Three Tap pattern.


. **Approval:**
The pattern is confirmed after the third touch occurs. This indicates that the price has found support or resistance at a certain level and a trend reversal may occur.

The Three Tap pattern shows that buyers or sellers are concentrated at a certain price level on the price charts and the price may pause at this level. However, it should not be forgotten that, like every technical analysis pattern, the Three Tap pattern can be misleading and does not always give accurate results. Therefore, it should be validated by using it in conjunction with other technical analysis tools.

Let me give an example to give more information about the formation and use of the Three Tap pattern:


For example, the price of a stock has been in an uptrend for a long time and is approaching a certain resistance level. The price touches this resistance level for the first time but cannot break it and retreats. Later, the price approaches the resistance level again and touches it a second time, but again fails to break and retreats. For the third time, the price approaches the resistance level and this time breaks the resistance and continues the uptrend.


This situation can be considered as the formation of the Three Tap pattern. All three price touches occur at the same resistance level, and the third touch initiates a new upward move with the resistance broken. This is a sign that buyers are strong at a certain level of the price and indicates that the trend will continue.

The Three Tap pattern can be used by traders to analyze price movements and develop trading strategies because it signals trend reversals. However, like any technical analysis tool, it can be misleading when used alone and is recommended for use in conjunction with other indicators or analysis tools. It is also important to practice and gain experience to interpret price movements correctly.