Triple bottom

A triple bottom is a bullish reversal pattern consisting of three lows at approximately the same price level, separated by two rallies. The pattern shows that price has tested a support level three times and bounced all three times, revealing mounting strength among buyers. Each failed decline below support represents another failed attempt by bears. When price finally breaks decisively above both rally highs, the pattern is complete, and a sustained uptrend often follows. Triple bottoms are rarer and more significant than double bottoms because the triple bounce at the same level signals support strength more definitively.

How triple bottom forms

The pattern unfolds as price repeatedly tests the same support level. The first decline to the level bounces; price rallies. A second decline approaches the level; buyers push it back up. Price rallies to the first peak, then declines again, approaching the support level a third time. Once again, buying pressure prevents further decline. On the third bounce, strength is evident—buyers have defended this level repeatedly.

The defining feature is that each trough is at approximately the same level, showing the support is real and buyers are committed to defending it.

The peaks and resistance

The two peaks between the troughs provide resistance levels. If both peaks are at approximately the same level, breaking above that level (above both peaks) is the confirming signal. If the peaks are at different levels, the pattern is less clean.

Volume behavior

Volume typically increases with each successive bounce as buyers step in with more conviction. On the eventual breakout above the peaks, volume should surge further, confirming buyers are in control.

Measuring the reversal target

The measuring objective is peak high plus the height from the peak to the troughs. This provides an upside target estimate.

Rarity and significance

Triple bottoms are rarer than double bottoms. When they occur, they are more significant—three bounces at the same level signal support is strong and reversal is imminent.

Trading a triple bottom

Confirmation: Wait for price to close clearly above both peak highs on increasing volume.

Entry: Buy on the breakout, or wait for pullback confirmation.

Stop-loss: Place below the troughs.

Profit target: Use the measuring objective.

Real-world example

A stock declines to $40, rallies to $55, declines to $41, rallies to $56, declines to $39, then closes above $56 on heavy volume. The pattern signals support strength, with a measuring objective around $56 + $16 = $72.

Academic perspective

Academic research on triple bottoms is sparse, limited by the pattern’s rarity.

See also