📈 Triple Bottom Pattern – Bullish Reversal Signal

The Triple Bottom pattern is a classic bullish reversal formation that occurs after a downtrend. It signals that selling pressure is weakening and buyers are gaining control.

📘 What Is the Triple Bottom Pattern?

The Triple Bottom is a bullish reversal pattern shaped like a stretched "W." It occurs after a downtrend and consists of three lows (bottoms) at roughly the same price level separated by two peaks (neckline). Breaking above the neckline confirms a bullish reversal.

• Occurs after a clear downtrend.
• Three lows (bottoms) at roughly the same level indicate strong support.
• The highs between the lows form the neckline.
• Break above the neckline signals a bullish trend reversal.
  
  
  

💡 Market Psychology

- First Bottom: Sellers push prices lower, but buyers enter near support. - Second Bottom: Sellers test the support again but fail, showing strong buying pressure. - Third Bottom: Sellers fail a third time, confirming strong support. - Neckline Break: Confirms buyers are in control and an uptrend may follow.

✅ Pro Tip: Volume usually rises on the breakout above the neckline, confirming the bullish reversal.

⚙️ How to Trade Triple Bottom

1. Identify the three lows forming the "W" shape after a downtrend.
2. Draw the neckline at the highs between the bottoms.
3. Enter a buy (long) position after price closes above the neckline.
4. Place a stop-loss below the third bottom.
5. Set a target equal to the height from the bottoms to the neckline projected upward.
   
   
   

🏁 Conclusion

The Triple Bottom pattern is a strong bullish reversal indicator. Recognizing it early and confirming with volume and resistance levels can help traders identify profitable buying opportunities.

“When the Triple Bottom forms — support holds, and the bulls take control.”