Triple Bottom Pattern
Learn to recognize and trade a triple bottom pattern through interactive charts.
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What is a triple bottom pattern?
- Meta Platforms (META) Triple Bottom stocks
- American Express (AXP) Triple Bottom stocks
- JPYEUR Triple Bottom forex
- GBPUSD Triple Bottom forex
Triple bottom duration
A triple bottom usually forms over 3 to 6 months, a length of time that is typical of major reversals.
Triple bottom characteristics
A triple bottom is characterized by 3 lows, followed by a break above resistance.
- A triple bottom happens after a downtrend.
- A triple bottom is characterized by 3 lows, which act as support. These lows should stand approximately on the same level and be clearly spaced out.
- Price should also find resistance, temporarily, at the neckline which connects the peaks’ highs.
Trading volumes usually decline as the pattern develops, although you may see spikes around the lows. Regardless, it's most important that volumes rise in the final advance. The greater the volume, the more confidence you can have in the pattern’s validity.
Triple bottom trading tips
The pattern completes once the price breaks convincingly above the neckline. It's important that this happens on rising volume, at least 40% greater than average. Some traders wait for a successful re-test of the neckline before opening a long position. This means waiting for confirmation that the neckline now acts as support over several trading sessions.
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