What is a triple bottom pattern?

A triple bottom is a bullish reversal chart pattern that forms after a downtrend, made up of three price lows at a similar level separated by two peaks. It's confirmed when price closes above the neckline (the higher of the two peaks), signalling the downtrend has likely ended.

How reliable is the triple bottom pattern?

According to Bulkowski's analysis of over 2,500 trades, the triple bottom reaches its price target 74% of the time, with a break-even failure rate of just 13%, making it one of the more reliable reversal patterns, though still rarer than the double bottom.

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

A triple bottom requires three equal lows rather than two, making it rarer but generally considered a higher-conviction signal once confirmed. A double bottom occurs more frequently since it requires one fewer low to form.

What is a marubozu candlestick, and does it relate to a triple bottom?

A marubozu candlestick has little to no wick, showing one side controlled the entire session. A bullish marubozu breaking above a triple bottom's neckline is a strong confirmation signal for the reversal.

What is a hammer candlestick, and does it appear in triple bottom patterns?

A hammer candlestick can form at any of the three lows in a triple bottom, reinforcing that buyers are stepping in at that support level ahead of the eventual breakout.

Where should you place a stop-loss when trading a triple bottom?

A stop-loss is typically placed just below the lowest of the three bottoms, giving the trade enough room to absorb normal pullbacks while still protecting capital if the pattern fails.