Triple Bottom

The Triple Bottom is the bullish mirror of the Triple Top. Three roughly equal lows separated by two rallies, followed by a breakout above the intervening peaks, mark a powerful trend reversal to the upside. Because three failed attempts to break support indicate strong demand, the Triple Bottom is widely considered more reliable than a single Double Bottom.

Pattern formation

• Three lows printed within 2–3% of one another, separated by bounces.
• The two rallies create swing highs of similar magnitude.
• A horizontal line through those highs is the neckline.
• The pattern usually takes weeks to months to form, sometimes longer.

Confirmation

The breakout is valid only when price closes above the neckline. Higher-probability entries come on a retest of the neckline as new support, with stops just below the third low.

Volume cues

Healthy Triple Bottoms see diminishing volume on the second and third lows — fewer sellers each time. The breakout candle typically has expansion in volume, confirming demand. Patterns lacking this volume surge often fail.

Target projection

Measure the height from the bottoms to the neckline. Add this distance to the breakout price for the minimum target. Strong markets often run well past the measured move.

Common situations in Indian markets

• Mid-cap stocks after deep corrections often trace Triple Bottoms before resuming uptrends.
• Sector indices coming out of multi-quarter consolidation.
• Indices around long-term support (200-week moving averages, major Fibonacci levels).
• Commodities like gold, silver near psychological levels.

What can go wrong

Failed Triple Bottoms — where the third low breaks lower — typically trigger sharp downside. Risk management with disciplined stop placement just below the third low is essential. Avoid the pattern in stocks under heavy regulatory scrutiny or with weak fundamentals.

Frequently asked questions