Triple Bottom Pattern: Three Lows and a Breakout

What it shows

A coloured line through the six swing points, a dotted flat neckline that runs to the breakout candle, a light fill, the pattern name below the middle bottom, and a dotted target line ending in a Target label.

How Pravex works it out

1. Pravex works on swing points from the latest 600 candles. A swing low is a low under the 5 lows before it and not above the 5 lows after it, and a swing high mirrors it. Nothing can be called a swing until those 5 later candles exist. Where two lows (or two highs) follow each other, only the deeper low (or the higher high) is kept, which leaves a clean high, low, high sequence.
2. The pattern uses six alternating swings: the high where the lead-in starts, then the three lows with the two bounces between them. The three lows are the bottoms. The neckline is a flat line at the higher of the two bounces, and the height is the neckline minus the lowest bottom.
3. The bottoms may differ (highest minus lowest) by no more than the Low spread share of the height, and the two bounces by no more than the Bounce spread share. Before the first bottom there must be a real decline: the drop from the first high to the first low has to reach the Lead-in strength share of the pattern’s height, and the neckline has to sit under that starting high.
4. Breakout: the first candle after the third bottom that closes over the neckline. Target: the neckline plus the height. Failure level: the lowest bottom, with no extra allowance; a low under it before the break drops the shape.
5. Four statuses follow the breakout. Awaiting means neither the target nor the failure level has been hit yet. Reached means a high or low got to the target first, Failed means the failure level gave way first, and Indefinable means both fell inside one candle, so their order is unknown.

Settings

Setting	Default	What changing it does
Which patterns to keep	All	A status filter. All draws every pattern found; the other three remove patterns by status: Failed and Indefinable ones go with Awaiting and Reached, everything but Awaiting goes with Only Awaiting, and Last Awaiting keeps a single one, the latest Awaiting pattern.
Where targets are drawn	Only Awaiting	Turns the dotted target and its label on by status: for every pattern (All), for Awaiting ones only, for Awaiting and Reached ones, or for none. The pattern shapes are not affected.
Lead-in strength	50	The minimum size of the fall into the first bottom, in percent of the pattern’s height. 50 asks for a lead-in at least half as tall as the pattern; a higher number wants a more obvious decline first, a lower one lets weaker lead-ins through.
Low spread	10	How far apart the highest and lowest of the three bottoms may be, as a percent of the pattern’s height. At 10, bottoms within a tenth of the height of each other count as level.
Bounce spread	20	How far apart the two bounces between the bottoms may be, as a percent of the height. Raise it to accept uneven bounces.
Show unconfirmed patterns	off	Default off: a shape shows up once a close has gone through its breakout line. Switch it on to see shapes forming before that, with a dotted final leg ending at the running extreme since the last confirmed swing, which keeps moving, and the target the shape would carry.

How traders read it

A triple bottom reads as sellers failing three times at one level; the close over the higher bounce is the confirmation. Measure the height and add it to the neckline: that is the target.

Consider a made-up case where the bottoms sit near 90 and the bounces at 99 and 100. The neckline is 100 and the height 10, so a close over 100 puts the target at 110.

When it misleads

Three level lows are rare, and the six-swing setup needs room, so few will appear. A level that holds three times can also give way on the fourth test, which the pattern cannot warn of. Two things can still redraw a pattern after it appears. A newer swing that goes further than the last one of its kind takes its place, and a breakout on the candle that is still open counts only if the close holds. Unconfirmed shapes move all the time, since their last point is the running extreme.

Questions and answers

What is the difference between a triple bottom and a double bottom?

A triple bottom needs three lows with two bounces between them, held to the Low spread and Bounce spread tolerances. A double bottom has two lows and one bounce.

What is the triple bottom neckline?

A flat line at the higher of the two bounces between the lows.

Where is the triple bottom target?

The pattern’s height above the neckline, measured from the neckline price.

What makes a triple bottom Failed?

A low under the lowest bottom, with no extra allowance, after the break. If it happens before any close over the neckline, the shape is dropped.

Related: Triple Top Chart Pattern, Double Bottom Chart Pattern, Inverted Head and Shoulders Chart Pattern, All Chart Patterns, every indicator.