Triple Bottom Pattern
Original schematic showing the guide's principal visual relationships.
Three support tests with two rebound highs; confirmation is a break above shared resistance.
Pattern anatomy
Three defended declines near the same support area that may precede a bullish trend reversal.
Three support tests with two rebound highs; confirmation is a break above shared resistance.
How it works
Identify the prior trend first, mark repeated swing highs and lows, then draw only the support, resistance, or neckline justified by those pivots. A pattern remains provisional until price closes beyond its confirmation boundary; visual resemblance alone is not enough.
How to read it
The inability to establish a lower low shows persistent demand. The resistance formed by intervening rebounds determines completion.
Practical example
Three declines find demand near the same support area while the intervening rebounds define resistance. The bullish setup completes on a close above that resistance; a new low below the three troughs shows that repeated tests exhausted support instead.
Confirmation checklist
Look for an established prior trend, a completed boundary break, and preferably expanding volume or momentum confirmation. A reversal pattern formed without a trend to reverse is weaker evidence.
Limitations and false signals
Support becomes more vulnerable with every test, so the third trough can also precede a breakdown rather than a reversal.
Limitations and false signals
Frequently asked questions
What does this pattern or indicator describe?
Three defended declines near the same support area that may precede a bullish trend reversal.
How should the signal be confirmed?
The inability to establish a lower low shows persistent demand. The resistance formed by intervening rebounds determines completion. Look for an established prior trend, a completed boundary break, and preferably expanding volume or momentum confirmation. A reversal pattern formed without a trend to reverse is weaker evidence.
What can cause a false signal?
Support becomes more vulnerable with every test, so the third trough can also precede a breakdown rather than a reversal.