How to trade Triple Bottom chart pattern

Triple Bottom Chart Pattern Explained

• In this article, we will discuss about the Triple Bottom chart pattern.

• If you don't know how to trade the triple bottom chart pattern, Then this article will help you a lot. 

• A triple bottom pattern is also known as a triple bottom line pattern.

• You can increase your knowledge about the technical analysis by reading this article.

TRIPLE BOTTOM

• The Triple Bottom is a technical analysis chart pattern that indicates a change in trend.

• A Triple Bottom chart pattern is a bullish trend reversal chart pattern. 

• This chart pattern formed at the bottom after the end of a downtrend. 

• A formation of a triple bottom pattern is a signal of a bullish trend reversal. 

• The Triple Bottom pattern is also known as the triple bottom line pattern.

• Triple Bottom pattern is an extension of the double bottom chart pattern.

• This pattern appears as a neckline with three bottoms.

• How is the triple bottom pattern formed?

• A Triple Bottom pattern formed after the end of a downtrend, Which indicates sellers are becoming weak.

• When the price action moves down, it formed a lower-low and lower-high. 

• The price is bouncing back before breaking the lows (first and second bottom), it means sellers are unable to make a new low below the previous lows (first and second bottom), Which shows buyers are coming back.

• The blue coloured horizontal line in the image is called the "neckline" of a triple bottom pattern.

• After the triple bottom pattern breakout, the price action shifts from LL-LH to HL-HH (initiating the bull trend). 

• The previous trend of the market was down, and after a Triple Bottom chart pattern breakout, the trend is reversed to the upside. 

• Therefore, this pattern is called the bullish reversal chart pattern.

• How to recognize a valid triple bottom chart pattern? 

• (a) A Triple Bottom pattern is valid if all three lows are almost same.

• (b) If price action forms a higher-low without breaking the previous lows, then it's a valid triple bottom pattern.

• By connecting the three lows, it formed a slightly upward shifting trendline.

• (c) The second low break the first low, but the third low does not break the second low. 

• Similar to inverted Head and Shoulder pattern. 

• (d) If the third low breaks either the first or the second low, it is an invalid Triple Bottom pattern.

• How to trade the Triple Bottom chart pattern?

• A triple bottom pattern is activated when the price action breaks above the neckline. 

• Entry :

• Take entry when the candle is closed above the neckline. 

• Target :

• The target should be equal to the distance between the neckline and the bottoms. 

• Stop Loss :

• The SL should be placed below the previous bottom of the pattern. 

SHORT QNAs

1) What does triple bottom pattern mean? 

• The triple bottom pattern is a technical analysis chart pattern that indicates a change in trend. 

2) Is triple bottom bearish or bullish? 

• A triple bottom is a bullish chart pattern, which formed at the bottom. 

3) What is the success rate of triple bottom pattern? 

• The success rate of the triple bottom pattern is approx 65-80%.

4) What is the opposite of triple bottom? 

• The opposite of the triple bottom is the bearish triple top pattern. 

5) Triple Bottom pattern is a signal of ______.

• Bullish trend reversal

6) What is triple bottom target price? 

• The target price should be equal to the distance between the neckline and the bottoms. 

7) What is triple bottom stop loss price? 

• The SL should be placed below the previous bottom of the pattern. 

8) A triple bottom pattern is also known as ______.

• Triple Bottom Line

Thanks For Reading Article........📝

Read More >>

• Triple Top Chart Pattern

• Double Bottom Chart Pattern

• Cup And Handle Chart Pattern

• Inverted Head And Shoulder Chart Pattern