What Is a Triple Bottom Chart in Technical Analysis?
By Forex & Brokers DeskUpdated Nov 10, 2026
Definition
A triple bottom is a bullish reversal pattern where price tests the same low three times in a downtrend, then closes above the resistance set by the rebound highs.
Key takeaways
- A triple bottom has three roughly equal lows, two intervening peaks that define resistance, and a confirming breakout above that resistance.
- It is a reversal pattern, so it requires an existing downtrend before it forms.
- Traders look for volume that fades through the lows and expands on the breakout.
- The usual price target adds the pattern's height to the breakout level.
- The pattern's main weakness is its risk-reward profile: a stop below the lows sits far from a breakout entry.
A triple bottom is a bullish reversal chart pattern in technical analysis. Price falls to roughly the same low three separate times, rebounds after each test, and then closes above the resistance level formed by the rebound highs. The three lows show that buyers repeatedly absorbed selling at one price. The breakout above resistance is the signal that control has moved from sellers to buyers. Until that breakout happens, the formation is only a potential triple bottom, and it can still turn into a range or a continuation of the downtrend.
How the triple bottom pattern forms
The pattern develops in stages, and each stage changes what the chart is saying.
- First low. Inside a downtrend, price drops to a low and bounces. On its own, this looks like an ordinary pause in a falling market.
- Second low. Price falls back to about the same level and bounces again. Sellers failed to push through a price they reached before, which suggests buyers are defending it. This is where a double bottom would complete if price broke out.
- Third low. A third test holds near the same level. Repeated failure at support suggests sellers are running out of willingness to sell lower.
- Breakout. Price rises through the resistance drawn across the two peaks between the lows. Remaining bears may cover, and the pattern is confirmed.
Traders commonly apply three qualifying rules:
- A prior downtrend. Without one, three equal lows describe a trading range, not a reversal.
- Roughly equal, well-spaced lows. The lows do not need to match to the pip, but they should be close enough that a line connecting them is about horizontal. They should also be separated by meaningful rallies rather than bunched together.
- Volume behavior. Volume tends to decline across the three lows, a sign that selling pressure is weakening, and rises when price breaks resistance.
The two peaks between the lows matter as much as the lows. If they sit at similar heights, resistance is horizontal. If the second peak is lower than the first, the resistance line slopes down, and the chart starts to resemble a descending triangle, which is usually read as bearish.
Measuring the target and placing a stop
The standard projection is a measured move:
Target = breakout level + (breakout level − pattern low)
The stop-loss usually goes either just below the breakout level or just below the three lows.
Worked example (hypothetical)
Assume a currency pair in a downtrend makes lows at 1.0800, 1.0795 and 1.0805. The rallies between them peak at 1.0900 and 1.0905, so resistance sits at about 1.0900.
- Pattern height: 1.0900 − 1.0800 = 100 pips
- Target: 1.0900 + 0.0100 = 1.1000
- Entry: a close above resistance at 1.0915
Compare the two stop placements, assuming the target is reached and ignoring spread:
| Stop placement | Stop level | Risk | Reward to 1.1000 | Reward-to-risk |
|---|---|---|---|---|
| Below the lows | 1.0780 | 135 pips | 85 pips | about 0.63 |
| Below the breakout | 1.0870 | 45 pips | 85 pips | about 1.9 |
The stop below the lows sits beyond the level that would invalidate the pattern, but it risks more than the projected gain. The tighter stop improves the ratio. It also sits inside a zone price can revisit after a breakout, so it is more likely to be hit before the move develops. Once you choose a stop distance, a position size calculator converts it into a lot size that matches the amount you are willing to lose.
Using a triple bottom in a trading strategy
A typical triple bottom trading strategy waits for a candle close above resistance rather than buying at the third low. Buying the third low gives a better price, but it bets on a pattern that has not yet confirmed.
Traders often look for supporting evidence from other tools. An oversold Relative Strength Index (RSI) near the lows, or a bullish divergence where price holds level while momentum improves, adds weight to the reversal case. Rising volume on the breakout is another check. Some traders use the Average True Range to judge whether a breakout candle is large relative to normal volatility, or to keep a stop outside routine price noise.
Triple bottom vs. similar patterns
Double bottom. A double bottom has two lows, while a triple bottom adds a third test. The extra test makes the reversal case stronger because support held one more time. It also takes longer to form, and a failed double bottom is often how a triple bottom begins.
Triple top. The triple top is the mirror image. It forms after an uptrend, with three roughly equal highs and a break below the support beneath them, and it is a bearish reversal signal. Both patterns describe a long contest between buyers and sellers at one level. If neither side wins, the structure simply becomes an extended range.
Descending triangle. This pattern also has a flat floor, but its highs are falling. Lower highs mean sellers are stepping in earlier on each rally, the opposite of what a triple bottom implies. The two only separate decisively when price breaks one way. For a full comparison of triangle types, see the triangle pattern guide.
Inverse head and shoulders. If the middle low is noticeably deeper than the outer two, the same three-low structure is read as an inverse head and shoulders. Where the lows are nearly equal, the two labels can describe the same chart.
Limitations
- Hindsight bias. The pattern is easiest to identify after the move is over. In real time, the third low looks just like the start of another leg down.
- Ambiguity. “Roughly equal” is a judgment call. Two traders can draw different lows, different resistance and therefore different targets.
- Risk-reward. As the worked example shows, the conventional stop can sit farther away than the projected target.
- Probability, not certainty. A confirmed breakout can still fail and fall back into the range. The target is a projection, not a level price is obliged to reach.
FAQs
Is a triple bottom bullish or bearish?
A triple bottom is bullish. It signals a possible reversal from a downtrend to an uptrend once price breaks above resistance. Its opposite, the triple top, is bearish.
What if price breaks below the three lows instead?
The pattern is invalidated. A decisive close below the lows means support failed, and the prior downtrend may be resuming. That is why a stop is often placed just below the lows.
Should you buy at the third low or wait for the breakout?
Most rule sets treat the breakout as the signal. Buying at the third low gives a lower entry and a closer stop, but at that point the formation is unconfirmed and could still break down.
The Bottom Line
The pattern matters to traders looking for an end to a downtrend who are willing to wait for confirmation. A close above resistance turns a potential triple bottom into a signal, and volume, RSI or ATR can add support. Because a stop below the lows can risk more than the measured target pays, check the reward-to-risk and size the position before entering.
