Triple Bottom Pattern: explained

The triple bottom usually appears at the end of a bearish trend and when it is confirmed, it indicates a change of trend to an uptrend. It differs from the double bottom in that the bottom is formed by three quotation peaks instead of two.

triple bottom chart pattern

What happens is that the price does not have enough strength to continue downwards and break the level of the two previous lows, both of the same price levels. The triple bottom, once formed, is a significant trend indicator.

For the formation of a triple bottom, the price must break the price level corresponding to the highs that are between the three peaks, that is, line B. Once this level is broken, the price should rise by a distance equal to that which separates lines A and B. It is very important to wait for the confirmation (break of line B) since otherwise, a bearish trend continuation flag could be forming.

what is a triple bottom pattern

As with double bottoms and ceilings, it is very common to observe a Pullback when line B is broken. This means that the previous resistance is now supported. In the following example, we can observe a triple bottom in Telecom Italia with the subsequent formation of the Pull-back. In addition, the price exceeded line C by a wide margin.

chart pattern triple bottom

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FAQ

How does the triple bottom pattern differ from the double bottom?

The main difference between the triple-bottom and double-bottom patterns is the number of lows. While the double-bottom pattern has two lows, the triple-bottom pattern has three lows.

How is the triple bottom pattern formed?

The triple bottom pattern is formed when the price fails to break below the level of the two previous lows, both of which are at the same price level. The pattern is confirmed when the price breaks above the resistance level formed by the highs between the three peaks.

What does it mean when the triple bottom pattern is confirmed?

When the triple bottom pattern is confirmed, it signifies a change in trend from bearish to bullish. It suggests that the price has been unable to sustain downward momentum and is now poised for an upward move.

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