The reason why the Japanese particularly value the triple top and triple bottom forms may be because, in Japanese culture, the number 3 has a special meaning. As Westerners, we don’t necessarily have many special feelings about the three peaks in the form of three mountains. In our view, the double-top pattern and even the rare quad-top pattern (the market has tested a high level four times upwards), compared with the triple-top pattern, their technical significance is equally divided. But the Japanese think differently. Perhaps, in this way, they can uncover the neglected aspect of Western technical analysis theory for us. Interestingly, in Western technical analysis theory, there are many price patterns and technical concepts based on the number 3, which coincides with candlestick technology. The following text is taken from John. Mo Fei’s “Technical Analysis of Futures Market”:
Interestingly, the number “3” appears frequently in various technical analysis concepts and applications, and each has its own doorway. Speaking of which, not only does the sector principle use three lines, but the important bull and bear markets are usually divided into three stages (see Dow Theory and Elliott Wave Theory); there are three price gaps; some of the more typical reversal patterns, such as The triple top, head and shoulders, etc., have three significant peaks; there are three different types of trends (main trend, secondary trend, and short-term trend), and three different directions (up, down, and horizontal extension); In the continuous pattern, there are three types of triangles-symmetrical triangles, ascending triangles, and descending triangles; our information mainly comes from three channels-price, trading volume, and open interest. No matter what the reason is, the number 3 anyway runs through the entire field of technical analysis and plays a very important role.
John. Murphy was referring to, of course, Western technical analysis theory. However, what he said “the number 3 plays a very important role” is particularly accurate when used in candlestick technology. In the past in Japan, the number “3” had almost some mysterious origin. There is a saying in Japan, “Good things become three.” This sentence just expresses such a belief. By the way, although the Japanese regard the number 3 as a symbol of luck, the number 4 is regarded as an ominous symbol. The reason for this idea is not difficult to figure out-in Japanese, the pronunciation of the number 4 is the same as the pronunciation of the word “dead”.