Triple Bottom: What is a Triple Bottom?
Triple Bottom is a bullish chart pattern used in technical analysis represented by three identical loops and then a breakout above the resistance level.
– Triple Bottom is a visual pattern displayed by buyers (bulls) controlling (bear) price action from sellers.
– The triple bottom is generally seen as three almost identical levels that close the support and then the price action breaking the resistance.
– The formation of a triple bottom is seen as an opportunity to enter a bullish position.
What does the triple bottom tell you?
The triple bottom chart pattern traditionally follows a long-term trend where the market is controlled by bears. The first bottom could generally be a price movement, while the second bottom could be a signal for bulls to accelerate and prepare for a possible reversal. The triple bottom indicates that there is a strong support and bears can accept conditions when the price falls below the resistance level. Here are some rules to qualify for Triple Bottom:
1. There must be a current downtrend before the sample arrives.
2. The three ascents should be approximately equal in price and distance from each other. Even if the price is not exactly the same, it should be close to the same price so that the trendline is horizontal.
3. The noise should be reduced throughout the pattern to indicate that the bears are losing power, while the bullish noise should be increased as the price breaks due to the final resistance.
How to trade a triple bottom
The price target for a double bottom is usually lower and the distance between the breakout points. The triple bottom is similar to the double bottom chart pattern and can look like an ascending or descending triangle.
#Triple #Bottom #Triple #Bottom