Definition
A triple bottom is a bullish reversal chart pattern formed by three distinct lows that occur at roughly the same price level, separated by two intervening rallies. The repeated failure of price to break below that level signals that support is firm and selling pressure is exhausting.
It is the bottoming counterpart of the triple top. After an extended decline, the triple bottom suggests that the downtrend is ending and that buyers have successfully defended a price floor three separate times.
Why it matters
How it works
The three lows should land at approximately the same price, while the two peaks between them define a resistance level. The pattern is not complete, and not tradable, until price closes decisively above that resistance.
Volume tends to diminish across the three lows and then expand on the confirming breakout, lending the move credibility. The measured target is found by adding the height of the pattern, from the support low to the breakout level, onto the breakout point. A pullback to the broken resistance often follows before the advance continues.