Reversal Chart Pattern: Triple Bottoms
The triple bottoms pattern is the opposite of the triple top pattern. The triple tops (three valleys) pattern is a short-term bullish trend reversal pattern that often indicates the end of a downtrend and the beginning of an ascending trend. This triple tops pattern consists of three distinct decreases (valley formation) forming a support level with the same or more equal level and the peak formed as a clear separator between three decreases (valleys). The high level achievable by the peak is important for price projection purposes. Just as the volume is important. Instead, the volume should increase along with the formation of a decrease (valley) in a row.
Like the triple top’s pattern, the triple bottoms patterns pattern only has an entry signal to buy (buy). This signal is triggered when the price is between two peaks then closed above it. This breakout should be accompanied by an increase in volume as a decreasing volume may indicate a false breakout.
The price projection for the triple bottoms pattern is the same as double bottoms.
This is calculated by taking the distance from the resistance level formed at the highest peak level. That is between the peak to the bottom of the valley (decreasing) and adding it to the point where the resistance level can then be broken by the price.
However, prices will usually try to retest the previous resistance level. What will now be the support level (after penetration) and can even break this level before the uptrend takes effect.
If the support level can be broken by strong price movements. You must be careful and may be an indication of the exit trading level. who want to enter again because the price broke back above the support level.
Triple bottoms can be more reliable than double bottoms. That’s because the support level in the valley has gone through three tests and is able to survive.