Triple Bottom¶
A triple bottom is a bullish reversal chart pattern in which price declines to the same support zone three separate times, holds on each test, and then closes above the resistance line connecting the two intervening reaction highs. The three failed breakdowns signal that sellers cannot push price lower and that buyers are consistently absorbing supply at the level. It is the mirror image of the triple top and an extension of the double bottom, with the third test providing additional evidence that selling pressure is exhausted.
HOW IT WORKS¶
The pattern requires a prior downtrend, three distinct lows within roughly 1–3% of each other, and two reaction highs that define the neckline. The pattern is not confirmed until price closes above the neckline on expanding volume; three lows alone are not a tradeable signal. The conventional measured-move target is calculated as:
Price target = Neckline + (Neckline − Average Low)
Volume should contract into the third low and expand on the breakout, confirming genuine demand rather than short covering. Lows spaced weeks or months apart carry more weight than three touches within a compressed timeframe. If price loses the lowest of the three lows, the pattern is void and the level becomes a breakdown.
IN TAPEBOARD¶
Traders use the live scanner to identify stocks pressing against multi-touch support levels that match the triple bottom setup. A confirmed neckline breakout on the daily or weekly chart can be filtered alongside volume expansion to distinguish genuine breakouts from low-liquidity false moves. The measured-move target serves as a reference for structuring reward-to-risk on entries taken at the breakout close, with stops placed below the neckline retest zone. Options traders may use the confirmed pattern to define strikes for bull call spreads aligned with the measured objective.