Triple Bottom
Moderate ConsensusA bullish reversal pattern in which price tests the same support level three times without breaking down, then finally breaks up through the resistance formed by the intervening peaks.
Candlestick chart showing three troughs at roughly the same depth separated by two peaks at roughly the same resistance level, followed by a decisive break up through that resistance.
Sample data — illustrative only, generated to demonstrate this pattern's shape. Not a real security.
Identification Criteria
- Forms after a downtrend, with three troughs at approximately the same price level.
- Two peaks between the troughs establish a resistance (confirmation) line.
- Selling volume often diminishes with each successive test of support.
- The extra test of support (versus a double bottom) is sometimes read as a stronger base, though this is interpretive rather than a settled statistic.
Formation Logic
A triple bottom is essentially a double bottom that survives one more test of the same support level before turning up. The repeated defense of an identical price level suggests a well-defined, actively defended demand zone.
Breakout / Confirmation Rule
Confirmation requires a decisive close above the resistance line connecting the two peaks. The third trough alone is not a buy signal — wait for the break.
Measured-Move Price Target
A common illustrative measured-move technique: take the vertical distance from the troughs up to the resistance line, then project that distance above the breakout point. This is a planning heuristic, not a guarantee.
Common Pitfalls
- A genuine triple bottom can be difficult to distinguish from a broader trading range (rectangle) until the breakout direction is clear.
- The longer formation time versus a double bottom can tempt traders to act before confirmation.
- Troughs that vary meaningfully in depth weaken the pattern's reliability.