“Triple Taps” simply refer to 3+ successively lower lows or higher highs. Price action after the occurrence can signify either long or short entries in both circumstances. Usually, of course, you're going to find these around major areas of support or resistance. In trading, timing is everything, and this is one technique used to avoid the whiplash and follow the dominant flows.
Why it works (Below is described in the case of a sell off; reverse all logic for buying trends):
When things get vicious, orders accumulate below local lows. Big orders come into play that seek opportunity and “stopping the freight train” of price pummeling lower. In order to execute these orders, price gets pushed even lower until they simply are. Like anything else, some people are quicker than others, and 3 typical stabs at the lows is good enough to pull the trigger on the bids.
As all this is happening, sells are accumulating above price. In order for those to get executed, price needs to trade higher.
There are two things that can occur:
1. Price does indeed trade higher, attempting to take out the sells
2. Price violates all 3 stabs at the lows and makes a run for the next major order block.
For long entries, I'm seeking a break of the supply line. Supply lines are drawn inside peaks in price and I'm seeking backward retests. Target is an extension beyond the highs of point 1 retrace.
For short entries, I'm looking for a violation of point 1. Target is approximately 3/4 to double the previous selloff range.
As for the macro environment, the more reason people have to sell, the more likely they are to do it. Understanding your drivers, and what the typical reaction for like-news is just as relevant as any form of price action. Be sure you're staying on top of what's moving price and key in to standard shifts in price.
The chart below represents a few very clear examples of both longs and shorts over a relatively small window of time. I do tend to prefer volatility when using these, particularly when playing momentum. You are of course likely to see less when it comes to reversals.
For those seeking more, I think it is worth mentioning that this type of technique is similar to standard 1-2-3 patterns by Joe Ross (though with his, 1-2-3's represent varying highs and lows), and the sells represented below, the TTE entry. Years ago, some of my first major introductions to price action came via Joe and Tom Demark, so there might be some additional “take homes” from his like-work. Enjoy.