Triple Bottom / 三番底
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A reversal pattern at the bottom of a downtrend where three troughs form at approximately the same price level. Being supported at the same level three times, followed by a neckline breakout, produces a strong buy signal. Considered more reliable than a double bottom. This is a classic pattern in traditional Japanese technical analysis, where three valleys indicate a market bottom.
Enter long when price clearly breaks above the neckline (resistance) on a closing basis. Waiting for a retest provides greater safety.
Project the distance from the neckline to the troughs upward from the neckline breakout point.
Place a stop-loss slightly below the third trough's low (1-3% below).
Ideally, the first trough has the highest volume, with progressive decreases at the second and third troughs. A volume surge at the neckline breakout enhances reliability.