I've noticed that many traders ignore classic technical analysis patterns, even though they still work in crypto. Especially interesting are rare but powerful formations like the triple top and triple bottom.

What's happening here? The triple bottom appears at the end of a decline and looks like the letter W. The market tries to fall below three times but can't, and each time the price reverses roughly at the same level. When this happens, sellers are exhausted, and a recovery begins. This is a bullish pattern that can signal the start of a new upward trend.

The opposite of the triple bottom is the triple top. It forms after a rally and looks like the letter M. Three failed attempts to break higher, then the market reverses downward. A bearish pattern, a warning to bullish traders to be cautious.

When I look for these patterns on the chart, I pay attention to a few things. First, I need to ensure that the three extremes are really close in price. If they are spread out by 5-10%, it's no longer a triple bottom. On a 15-minute Bitcoin chart in 2024, I saw a classic example: the price bounced three times from $42,100 without breaking above $45,900. All three peaks were within 0.4% of each other. Perfect.

After identifying the three points, I wait for confirmation. For a triple bottom, this means a breakout above the local high between the lows. For Ethereum in 2021, the first bottom was at $1728, the second at $1697, the third at $1716. The high between them was $2912. As soon as the price broke above $2912 with good volume, it was a signal.

Entering earlier than confirmation is risky. Beginners often see three touches and immediately open a position. Then the pattern fails to confirm, and they lose money. It's important to wait for a real breakout.

Once the triple bottom is confirmed, the market usually moves a distance equal to the pattern's height. If the distance from the low to the high is $1215, then the target will be $1215 above the breakout point. For Ethereum, that would give a target level of $4127.

I set a stop-loss below the deepest low in the pattern. This is a conservative approach but helps preserve capital if it fails.

There are a few limitations you can't ignore. First, volume. If the breakout happens on low volume, it might not hold. Second, liquidity. These patterns work better on large assets like Bitcoin and Ethereum than on small altcoins. Third, remember that no pattern guarantees 100%.

The triple bottom remains one of my favorite tools in technical analysis. It's a rare formation, but when it appears, it's a serious signal. The main thing is not to rush, wait for confirmation, and always set a stop-loss. On Gate, you can effectively trade these patterns across different timeframes and assets. It all comes down to patience and discipline.