Recently, many people have been asking how to identify bottom patterns. Today, let’s talk about the classic reversal signal known as the triple bottom.



Put simply, a triple bottom is when, during a downtrend, the price touches the same support level three times but does not break it convincingly, forming three bottoms that are close to each other. This pattern usually appears at the end of a long-lasting decline, and it often suggests that the selling pressure is starting to weaken—the market may be ready to turn around.

So what does the pattern look like? First, there are three lows. They don’t have to be exactly the same, but they should be at relatively similar levels. Then after each dip, the price rebounds, which forms two rebound highs. Connecting these two highs is what’s called the neckline—the key resistance level.

The most critical part here is the change in trading volume. During the first two rebounds, the volume may be relatively normal, because the market is still hesitating. But when the third rebound breaks through the neckline, the volume must clearly increase—only then can it be convincingly said that the buying side has genuinely strengthened, making the reversal more credible.

In real-world trading, there are a few details worth paying attention to. First, look at the slope of the neckline: if the neckline slopes upward, it indicates buyers are in control, making the bullish signal more reliable. Conversely, if the neckline is horizontal or even slopes downward, be more cautious, because the rebound strength may not be as strong.

Another point is that you must watch volume during the breakout. If the price breaks through the neckline without a volume expansion, it could be a false breakout, and there’s a risk of a pullback. I usually confirm using RSI or MACD bottom divergence—positive divergence at the bottom—to improve reliability. You can also observe whether the price breaks above the 200-day moving average; if it does, the likelihood of a trend reversal becomes even higher.

As a classic pattern, the triple bottom does have reference value. But remember, this is just sharing a pure candlestick pattern—specific market moves still require you to judge for yourself. Don’t copy it blindly.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin