The Triple Bottom pattern is similar to Double Bottom but has three troughs at approximately the same level. This is a stronger reversal signal than Double Bottom.
Pattern Details
Category
reversal
Success Rate
86%
Average Move
+22%
Duration
3-6 weeks
Pattern Structure
Pattern Structure
Key components that define this chart pattern
1
Three troughs at approximately the same price level
2
Two peaks between the troughs
3
Resistance line connecting the two highest peaks
Trading Rules
Trading Rules
Essential rules for trading this pattern successfully
✓
Enter long position when price breaks above resistance line
✓
Volume typically increases through each trough
✓
Target = Distance from trough to resistance line
✓
Stop loss placed below lowest trough
Trading Tips
Three troughs don't need to be exactly equal
Stronger signal than Double Bottom
Triple confirmation of support level is very strong