How to Trade Triple Bottom Patterns

Triple bottom patterns are a bullish pattern. It consists of three valleys or support levels. After the first valley is formed, price goes up either quickly or gradually. After that, price moves back down to the first valley level and it holds that first support level, thus creating a double bottom. After that, price moves up then pulls back down to the first and second support level and holds, thus creating triple bottom. Look for price to hold support areas and continue up to confirm bullish continuation.

What Are Triple Bottom Patterns?

A triple bottom pattern consists of several candlesticks that form three valleys or support levels that are either equal or near equal height. Typically when the third valley forms, it can’t hold support above the first two valleys and causes a triple bottom breakout.

In order for triple bottom patterns to form, a strong trend needs to be in place. The triple bottom typically forms in a long bearish downturn with plenty of price structure. What I mean by that is an over-arching pattern will form.

Bears have been in control of the trend but the bulls are starting to come back in, at a key support level for the time frame you are trading. You may see a triple bottom while in an uptrend before continuing higher.

In order for a triple bottom pattern to form, it needs three lows. The first bottom could just be simple price action movement. The first low forms and there’s not much thought about it. The second bottom is signaling that the bulls are gaining momentum. A possible reversal is on it’s way.

Next, the last bottom forms. This indicated a strong support level is in place. When the bears see that they’ve hit a low 3 times and haven’t been able to push price lower, they give into the bulls as price breaks resistance.

The lows should be equal in price each time although that may not always be the case. If it’s not equal it needs to be pretty close to it. It also needs to be well spaced as well as have significant turning points.