Learn To Trade Forex • Best Forex Trading Course • AsiaForexMentor

  • Best Brokers
    • Choosing Brokers
    • Comparing Brokers
  • Best by Country
    • flags Best Forex Brokers in Taiwan
    • flagsBest Forex Brokers in Singapore
    • flagsBest Forex Brokers in South Africa
    • flagsBest Forex Brokers in Japan
    • flagsBest Forex Brokers in Philippines
    • flagsBest Forex Brokers in Malaysia
    • flagsBest Forex Brokers in Vietnam
    • flagsBest Forex Brokers in India
    • flagsBest Forex Brokers in Thailand
    • flagsBest Forex Brokers in South Korea
    • flagsBest Forex Brokers in China
    • flags Best Forex Brokers in Indonesia
    • flagsBest Forex Brokers in UAE
    • flagsBest Forex Brokers in Dubai
    • flagsBest Forex Brokers in Italy
    • flagsBest Forex Brokers in Spain
    • flagsBest Forex Brokers in UK
    • flagsBest Forex Brokers in US
    • flagsBest Forex Brokers in Australia
    • flagsBest Forex Brokers in Switzerland
  • Brokers Review
  • Ranking List
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • MT5 Forex Brokers
      • cTrader Forex Brokers
      • Commodity Brokers
    • By Regulation
      • FCA Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • ECN Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
    • By Brokers Types
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platforms
    • Top 10 Best Forex Brokers
  • Brokers
    • Choosing Brokers Categories
    • Compare Forex Brokers
  • Ranking List
    • Best Forex Brokers
    • Brokers by Country
      • US Forex Brokers
      • UK Forex Brokers
      • Australian Forex Brokers
      • Swiss Forex Brokers
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • Commodity Brokers
    • By Regulation
      • ECN Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • FCA Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
      • Top 10 Best Forex Brokers
    • By Brokers Type
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platform
  • Academy
    • Forex Guide
    • Trading Videos
    • Trading Strategies
    • AFM One Core Program
    • Trade Rescue Operation
    • Corporate Training & Advisory
  • Promotions
  • Awards
  • Newsletter
  • Best Brokers
    • Choosing Brokers
    • Comparing Brokers
  • Best by Country
    • flags Best Forex Brokers in Taiwan
    • flagsBest Forex Brokers in Singapore
    • flagsBest Forex Brokers in South Africa
    • flagsBest Forex Brokers in Japan
    • flagsBest Forex Brokers in Philippines
    • flagsBest Forex Brokers in Malaysia
    • flagsBest Forex Brokers in Vietnam
    • flagsBest Forex Brokers in India
    • flagsBest Forex Brokers in Thailand
    • flagsBest Forex Brokers in South Korea
    • flagsBest Forex Brokers in China
    • flags Best Forex Brokers in Indonesia
    • flagsBest Forex Brokers in UAE
    • flagsBest Forex Brokers in Dubai
    • flagsBest Forex Brokers in Italy
    • flagsBest Forex Brokers in Spain
    • flagsBest Forex Brokers in UK
    • flagsBest Forex Brokers in US
    • flagsBest Forex Brokers in Australia
    • flagsBest Forex Brokers in Switzerland
  • Brokers Review
  • Ranking List
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • MT5 Forex Brokers
      • cTrader Forex Brokers
      • Commodity Brokers
    • By Regulation
      • FCA Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • ECN Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
    • By Brokers Types
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platforms
    • Top 10 Best Forex Brokers
  • Brokers
    • Choosing Brokers Categories
    • Compare Forex Brokers
  • Ranking List
    • Best Forex Brokers
    • Brokers by Country
      • US Forex Brokers
      • UK Forex Brokers
      • Australian Forex Brokers
      • Swiss Forex Brokers
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • Commodity Brokers
    • By Regulation
      • ECN Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • FCA Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
      • Top 10 Best Forex Brokers
    • By Brokers Type
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platform
  • Academy
    • Forex Guide
    • Trading Videos
    • Trading Strategies
    • AFM One Core Program
    • Trade Rescue Operation
    • Corporate Training & Advisory
  • Promotions
  • Awards
  • Newsletter
AFM Proprietary Program
  • Best Brokers
    • Choosing Brokers
    • Comparing Brokers
    • Best CFD Brokers
    • Best ECN Brokers
    • Best MT5 Brokers
    • Best MT4 Brokers
    • Best cTrader Brokers
    • Best Spread Betting Brokers
    • Best PayPal Forex Brokers
    • High Leverage Forex Brokers
    • Best Zero Spread Brokers
    • Lowest Spread Forex Broker
    • Best Raw Spreads Brokers
    • Best TradingView Brokers
    • Best Forex Broker for Beginners
    • Best Forex Brokers for Scalping
    • Best Forex Options Brokers
    • PAMM Account Brokers
    • Best Bitcoin Forex Brokers
    • Best Cent Account Forex Brokers
    • Cheapest Forex Brokers
    • Best Commodities Brokers
  • Best by Country
    • flags Best Forex Brokers in Taiwan
    • flagsBest Forex Brokers in Singapore
    • flagsBest Forex Brokers in South Africa
    • flagsBest Forex Brokers in Japan
    • flagsBest Forex Brokers in Philippines
    • flagsBest Forex Brokers in Malaysia
    • flagsBest Forex Brokers in Vietnam
    • flagsBest Forex Brokers in India
    • flagsBest Forex Brokers in Thailand
    • flagsBest Forex Brokers in South Korea
    • flagsBest Forex Brokers in China
    • flags Best Forex Brokers in Indonesia
    • flagsBest Forex Brokers in UAE
    • flagsBest Forex Brokers in Dubai
    • flagsBest Forex Brokers in Italy
    • flagsBest Forex Brokers in Spain
    • flagsBest Forex Brokers in UK
    • flagsBest Forex Brokers in US
    • flagsBest Forex Brokers in Australia
    • flagsBest Forex Brokers in Switzerland
  • Brokers Review

    Forex Brokers

    • AvaTrade
    • Plus500 標誌 Plus500
    • FP Markets
    • TMGM
    • EXNESS
    • XM
    • JustMarkets
    • HTFX
    • Doo Prime
    • Markets4you

    Stock Brokers

    • XM
    • Interactive Brokers
    • Orbex
    • RoboForex

    Crypto Exchanges

    • Binance
    • Coinbase
    • Gemini Exchange
    • Kraken

    Prop Firms

    • iFunds
    • IC Funded
    • The 5ers Logo (2)-svg The 5%ers
    • TopStep

    Binary Brokers

    • IQ Option
    • Pocket Option
    • RaceOption
    • IQCent
  • Ranking List
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • MT5 Forex Brokers
      • cTrader Forex Brokers
      • Commodity Brokers
    • By Regulation
      • FCA Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • ECN Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
    • By Brokers Types
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platforms
    • Top 10 Best Forex Brokers
  • Brokers
    • Choosing Brokers Categories
    • Compare Forex Brokers
  • Ranking List
    • Best Forex Brokers
    • Brokers by Country
      • US Forex Brokers
      • UK Forex Brokers
      • Australian Forex Brokers
      • Swiss Forex Brokers
    • Popular Brokers
      • Pamm Forex Brokers
      • MT4 Forex Brokers
      • Commodity Brokers
    • By Regulation
      • ECN Regulated Forex Brokers
      • NYSE Regulated Forex Brokers
      • NFA Regulated Forex Brokers
      • FCA Regulated Forex Brokers
    • By Instruments
      • Gold Trading Brokers
      • Oil Trading Brokers
      • Top 10 Best Forex Brokers
    • By Brokers Type
      • Stp Brokers
      • Market Makers
    • By Prop Trading Firm
    • By Trading Platform
  • Academy
    • Forex Guide
    • Trading Videos
    • Trading Strategies
    • AFM One Core Program
    • Trade Rescue Operation
    • Corporate Training & Advisory
  • Promotions
  • Awards
  • Newsletter
AFM Proprietary Program

What Is the Triple Bottom Pattern

Written by

Ezekiel Chew

Updated on

January 29, 2024

i
Its a default text
January 29, 2024 8:52 am No Comments

triple bottom

Investors harness the power of chart patterns, to get an insight into the current market and predict future movements. When in need of a reliable bullish reversal pattern, most turn to the triple bottom that usually happens during the conclusion of a downtrend.

The candlestick pattern indicates an imminent shift in the direction of a trend, following three unsuccessful tries by the sellers to penetrate the support level.

triple bottom 2
Photo credit: Pexels.com

Also Read: How to Trade the Tweezer Top Pattern

Contents

  • What the Triple Bottom Chart Pattern Reveals
  • How to Trade with the Triple Bottom Pattern
  • Rules for Trading with Triple Bottom
  • The Difference Between a Triple Bottom and a Triple Top
  • Limitations of a Triple Bottom
  • Conclusion
  • FAQs

What the Triple Bottom Chart Pattern Reveals

The name of the pattern provides a few hints about its purpose, such as that it is one of the reversal patterns. It gets formed by three successive lows, which are typically at an identical level. But for the triple bottom to happen and be productive, the same price action must get traded in an obvious downtrend.

In this situation, the sellers will attempt to drive the price lower to see the potential of the horizontal support, but they may encounter buyers that will put up significant resistance. Resulting in the price action, going higher, while the sellers regroup and prepare for the second attempt.

Not surprisingly, as you are already aware, the second try of the sellers will produce the identical result. Making the sellers more determined to attempt a new offensive, especially because the price action remains in their control, and they have been unsuccessful for the second time.

triple bottom 3

Typically the price will come back to the previous levels, similar to the outcome of the preceding rebound. Taking into account that the downtrend is powerful the sellers drive the price action lower, attempting to crush the buyer's determination. Although the effect is identical to the previous attempts.

In the end, sellers capitulate in this case, and the buyers take control of the price action. This time enlarging the rebound to a bigger level, so much so that it will eliminate any losses sustained previously.

On triple bottom chart patterns, the visual layout is composed of a blue line indicating the horizontal support, this is the situation where the bears failed to enlarge the downtrend. The higher position of the neckline is usually shown as a red line that connects the highs of the 2 rebounds.

The neckline is crucial in the triple bottom pattern, when it breaks to the upside it triggers the pattern, and enables investors to identify take profit and stop loss,

The three key elements of the triple bottom chart pattern are:

  • The downtrend: the price of an asset has to trade lower;
  • The neckline: the break-in this element indicates the start of the formation
  • Horizontal support: trend line connecting three generally identical lows;

Back to top

How to Trade with the Triple Bottom Pattern

When you learn the dynamics of the pattern, verifying it and trading the triple bottom is fairly simple. Let’s illustrate this with a hypothetical situation about a company we will call ABC. In the winter of 2020, ABC was correcting lower to integrate earlier gains.

If you have a look at the daily chart, it’s not hard to locate three low points emerging at the identical price level.

The initial low point is at $628, the second is at $597, and the third is at $616. All prices are split by about two percent from their previous prices.

triple bottom 4

The next stage is to place the entry for the triple bottom pattern. But this can be done, after verification. The triple bottom gets verified when the price goes over the pattern's high point. This point in the pattern gets located by using vertical lines to indicate the first and third bottoms.

After that investors need to locate the highest price point between the two vertical lines and indicate it with a horizontal line. Because the triple bottom is a bullish reversal pattern, investors should place a long position at the breaking point. Meaning traders have to go long at $912.

The point of the stop loss is to reduce potential losses from the trade and gets positioned under the entry. The lowest price point of the ABC triple bottom pattern is $ 597. In a verified breakout higher, the market will move to the same distance to the high point as it goes to the low point of the triple bottom pattern.

Back to top

Rules for Trading with Triple Bottom

There are a few rules that investors can follow when using the triple bottom chart patterns.

To start, investors have to identify the market stage and see if it is up or down. When the triple bottom emerges during a conclusion of a downtrend, the previous trend will be the downtrend.

Investors need to take a long position if the price breaks from the neckline or the resistance level.

Traders have to locate when the 3 rounding bottoms get created and take into account the bottom's size.

Stop Loss

In the case of the Triple Bottom pattern, the stop gets positioned at the pattern's third-bottom.

Price Target

The price target has to be the same as the distance between the neckline and the bottoms.

Back to top

The Difference between a Triple Bottom and a Triple Top

Where there is a bullish reversal chart pattern, chances are that soon you will encounter a bearish reversal chart pattern.

The opposite of the triple bottom is the triple top , which is a bearish reversal pattern. In this case, the price action has three attempts to break the resistance, only to achieve three nearly identical highs, and face the inevitable downward trajectory through resistance.

The two are in a nutshell mirror patterns that track the identical phenomenon in the market, a sustained competition among bulls and bears for dominance. This duel lasts until one side triumphs, or in a situation were nobody wins, then the triple bottom and top will develop into a longer-term range.

Also Read: Trading using Double Top pattern and Double bottom pattern

Back to top

Limitations of a Triple Bottom

Whenever you are using trading charting patterns there will be some degree of uncertainty, because you are using probability. The big issue that is characteristic of most chart patterns is the fact that the triple bottom, can get identified after the trading opportunity has gone by.

It's not unusual for a double bottom to fail and evolve into a triple bottom. While the head and shoulders pattern and the triple bottom are the same.  

For most traders, the biggest limitation of a triple bottom in any trading strategy is that it doesn't provide an appropriate balance between risk and reward, and the reason is the positions of the target and stop loss.

Hoping to increase profit opportunities, investors may decide to place stop loss inside the pattern and follow it until the breakout happens. The problem with this approach is the possibility to get stopped in the range for a small loss.

Back to top

Conclusion

Technical traders benefit from the bottom pattern, which enables them to locate reversal in a trend line. But also estimate the progress the trend will accomplish once formed. Investors need to perceive it as a neutral pattern before the breakout gets verified.

When the price breaks the upper resistance level with a drastic spike in volume, the momentum will probably move the price action up higher.

The pattern is rare, and the scarcity makes it an effective reversal pattern. The reason traders don't encounter it frequently is that 3 nearly identical lows don't occur often.

The triple bottom pattern doesn't have many weaknesses. The biggest problem is that the pattern is not very frequent otherwise it can be a productive reversal pattern.

Back to top

FAQs

What Is a Triple Bottom Pattern?

The triple bottom pattern indicates a bullish position when buyers assume control of the price action from the sellers. The triple bottom is typically gets represented as 3 generally identical lows that try to break the support but fail in breaching resistance.

Is it a Triple Bottom Bearish?

No, the triple bottom is a bullish chart reversal pattern that creates a trend change to the upside.

What Happens after a Triple Bottom?

Following the 3 low points of a triple bottom, investors can expect a bullish reversal to break out to new price highs. To verify the breakout traders need to locate the triple bottom pattern's high point.

Is Triple Top Bullish or Bearish?

The triple top is a bearish pattern because the pattern stops the uptrend and generates a change in the trend to the downside. Its starts with prices going higher reaching a resistance level, and going back to a support area.

Back to top

 

« Previous
Next »
Leave a Reply

Click here to cancel reply.

GET THE PROPRIETARY ONE CORE PROGRAM
The same system I use to make 6 figures a trade with

5 PART SYSTEM TO MAKE REALLY BIG MONEY IN TRADING

FREE TRAINING

We have generated over millions of dollars via trading with the 5 part system outlined in this free training. Download it now before this page comes down or when I decide to stop mentoring.
 

Services

  • AFM One Core Program
  • Corporate Forex Training
  • Trade Rescue
  • Speak At Your Event
  • AFM One Core Program
  • Corporate Forex Training
  • Trade Rescue
  • Speak At Your Event

Resources

  • Forex Trading Strategies
  • Forex Blog
  • Forex Vlog
  • Download Trading Platform
  • Forex Position Size Calculator
  • Forex Brokers Review & Rating
  • Forex Trading Strategies
  • Forex Blog
  • Forex Vlog
  • Download Trading Platform
  • Forex Position Size Calculator
  • Forex Brokers Review & Rating

Company

  • Who is Asia Forex Mentor
  • Asia Forex Mentor Reviews
  • Contact Us
  • Affiliate Program
  • Advertise with us
  • Best Crypto Broker
  • Broker Awards – Asia Forex Mentor
  • test2323
  • Who is Asia Forex Mentor
  • Asia Forex Mentor Reviews
  • Contact Us
  • Affiliate Program
  • Advertise with us
  • Best Crypto Broker
  • Broker Awards – Asia Forex Mentor
  • test2323

Address

6 Raffles Boulevard, #03-308,
Singapore 039594

Whatsapp Text: +65 8786 8319

Disclaimer: Any Advice or information on this website is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by ECG Pte Ltd, it’s employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd’s, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, Stocks, Indexes, Commodities, Crypto and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

AFM

#1 FOREX MENTOR IN ASIA

©2025 ASIA FOREX MENTOR. All Rights Reserved.

| Disclaimer – Terms of Use | Privacy Policy | Cookie Policy | Privacy Policy – Europe GDPR

English | Français | Deutsch

Facebook-f Youtube Instagram Tiktok Linkedin

Get Ezekiel Chew’s 5 Day Email Course on “How to be in the Top 10% league of Forex Traders”

100% Free – Delivered to your inbox

Subscribe to the most popular Forex Trading  blog online, join thousands of readers






Get Ezekiel Chew’s 5 Day Email Course on “How to be in the Top 10% league of Forex Traders”

100% Free – Delivered to your inbox

Subscribe to the most popular Forex Trading  blog online, join thousands of readers






I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!

I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!


Scroll to top

I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!