Recently, while reviewing candlestick charts, I recalled the classic reversal pattern known as the triple bottom, which is indeed a good tool for identifying bottoms.

The logic of the triple bottom is quite straightforward—price tests the same support level multiple times during a downtrend but never effectively breaks below it, forming three close low points. Note that these three lows do not need to be exactly the same, but they must be at similar levels. After each test of the bottom and rebound, two close high points are left above, and connecting these two highs forms the so-called neckline, which is a key resistance level.

The true power of the triple bottom lies in the volume confirmation. During the first two rebounds, the volume may still be hesitant, and the market hasn't fully confirmed the pattern. But when the third rebound breaks through the neckline with a significant increase in volume, that is the real signal—indicating that buying pressure has accumulated enough strength to launch a counterattack.

However, there are a few details to pay special attention to. First, look at the slope of the neckline; if it slopes upward, it indicates stronger buying momentum, and the bullish signal will be more reliable. Conversely, if the neckline is horizontal or even downward sloping, caution is advised, as the rebound strength may not be as robust.

Another critical point is—volume must confirm the breakout. If the breakout occurs without volume increase, it is likely a false breakout, and there is a risk of a pullback afterward. I usually combine RSI or MACD bullish divergence to enhance the credibility of the signal, and if the price also breaks above the 200-day moving average at the same time, it further confirms the authenticity of this triple bottom reversal.

The triple bottom pattern works like this: patiently wait for three tests of the bottom, then look for volume confirmation, which often allows you to seize some good reversal opportunities.