Triple Bottom - Chart Pattern

Triple Bottom Chart Pattern

Triple Bottom is a chart pattern with three bottoms very close in price. This pattern can be seen in all time-frames. There are a few requirements to classify a chart pattern as a triple bottom:

1. Price lows are close to each other
2. Equal distance in time between lows
3. Volume decreases on each successive bottom

Triple bottoms have an enormous amount of cause or breakout potential as the price of the stock has moved back in forth within a defined range. So, when the stock finally breaks out, there is an expansion in volume and price movement. Breakouts can occur to both the upside and downside. If you enter a breakout of a triple bottom chart pattern, you will want to keep a close stop above/below the support/resistance level.

Price Target

When a stock breaks out of a triple bottom formation, the price target is the range of the formation added to the breakout level.