TA School

Triple Bottom

Learn to identify the triple-support structure that signals buyer accumulation at major market bottoms.

intermediate level8 min read

Interactive Model

Interactive Visual Walkthrough

Triple Bottom Reversal

Step 1 of 4
Downtrend & Bottoms

Sellers drive the price down to support at $92 three consecutive times, but buyers step in each time to reject lower prices.

Why it matters: Three failed attempts to break support indicate that seller momentum is exhausted and buyers are accumulating shares.

What is a Triple Bottom Pattern?

The Triple Bottom is a bullish reversal pattern that consists of three troughs at roughly the same price level, separated by intermediate peaks. It represents a robust accumulationAccumulationA phase in the market cycle where institutional traders buy large quantities of an asset quietly over a period of time, keeping the price relatively r...Read full glossary entry → base at key supportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry →, indicating that sellers are exhausted and buyers are ready to lift prices.

Pattern Structure

A valid Triple Bottom consists of:

  1. Three Bottoms: Consecutive declines that find supportSupportA price level where buying pressure is strong enough to prevent the price from falling further. It represents a "floor" on the chart.Read full glossary entry → at the same price floor.
  2. Neckline / Peaks: The resistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry → line connecting the peaks between the bottoms.
  3. BreakoutBreakoutA price movement through an established support or resistance level. A breakout is often accompanied by increased volume, signaling strong momentum.Read full glossary entry →: A close above the neckline resistanceResistanceA price level where selling pressure is strong enough to prevent the price from rising further. It represents a "ceiling" on the chart.Read full glossary entry → on expanding volumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry →.

Psychology Behind the Pattern

  • Failed Sell-offs: Sellers try to push price lower three times but meet overwhelming buying interest (accumulationAccumulationA phase in the market cycle where institutional traders buy large quantities of an asset quietly over a period of time, keeping the price relatively r...Read full glossary entry →) at the support zone.
  • Shift in Power: The rallies off support show buyers gaining strength.
  • BreakoutBreakoutA price movement through an established support or resistance level. A breakout is often accompanied by increased volume, signaling strong momentum.Read full glossary entry →: Breaking the neckline resistance confirms that supply is exhausted and buyers are driving the market higher.

Identification Rules

  • Prior DowntrendDowntrendA market direction characterized by a sequence of lower highs and lower lows.Read full glossary entry →: Must follow a downward move.
  • Bottom Equality: Bottoms must be relatively equal in depth.
  • neck Break: Wait for a close above resistance.
  • VolumeVolumeThe total number of shares, contracts, or units of a security traded during a specified time period.Read full glossary entry →: Volume should expand during the breakout.

Trading Setup

  • Entry: Buy long when a candle closes above the neckline or on a retestRetestA price movement back to a previously broken support or resistance level to verify it holds as the opposite barrier.Read full glossary entry →.
  • Stop-Loss: Place below the bottoms.
  • Target: Project the height of the pattern upwards from the neckline.

Key Takeaways

  • •The Triple Bottom is a bullish reversal pattern showing three distinct troughs at key support.
  • •It indicates that sellers have failed three consecutive times to push price lower.
  • •The neckline is the resistance level connecting the intermediate peaks.
  • •The pattern is confirmed only when the price breaks and closes above the neckline resistance.
  • •The upside target is calculated by measuring the height of the pattern and projecting it upwards.
Knowledge CheckQuestion 1 of 5

What does a Triple Bottom pattern indicate?

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