Triple Bottom
Chart PatternsA bullish reversal pattern where the price tests the same support level three times, bouncing each time. The break above the resistance connecting the bounce highs confirms the pattern.
What Is a Triple Bottom?
A triple bottom forms when price tests a Support level three times without breaking through, with two bounces between the lows. The three lows should be at approximately the same level. A line connecting the bounce highs forms the resistance (neckline) of the pattern.
Three bounces off the same support zone demonstrate strong buyer commitment and suggest that sellers have exhausted their ability to push price lower.
How to Trade It
The pattern confirms when price breaks above the resistance line (neckline). On EUR/USD, enter long with a stop below the three lows. The target equals the height of the pattern (from support to resistance) measured upward from the breakout.
A retest of the broken neckline as new support is common and gives a conservative entry opportunity.
Timeframe Considerations
Triple bottoms on the daily chart that develop over several weeks are more significant than those forming in hours on a 15-minute chart. The pattern requires patience, as the three tests and two bounces take time to develop. Entering before the neckline breaks is risky because the price might simply be in a Range that eventually breaks down. Wait for the confirmed breakout before committing capital.
Related Terms
Triple Top
A bearish reversal pattern where the price reaches the same resistance level three times, failing each time. The break below the support connecting the pullback lows confirms the pattern.
Double Bottom
A bullish reversal pattern where the price reaches the same low twice with a bounce in between, forming a "W" shape. The break above the middle peak confirms the reversal.
Inverse Head and Shoulders
A bullish reversal chart pattern with three troughs where the middle trough (head) is the lowest. The neckline break above confirms the reversal from a downtrend.