How To Trade the Tripple Bottom Pattern and Make Consistent Profits
Have you ever jumped into a trade?
Lost capital?
Only to watch helplessly.
Prices break upward after a clear triple bottom pattern?
Relax!
And read on…
Many traders fail for lack of patience.
Trading a triple bottom is a huge opportunity. But, if you do it right.
How?
Read on…
This post will make you the best at trading triple bottom patterns.
Read every word. And take time to understand what I mean.
Dear traders….
In case you forget everything from this post. Please grab only one point:
A triple bottom is a trend reversal pattern.
What is a Tripple Bottom Pattern and How Does it Work?
Well….
What is a triple bottom pattern?
A triple bottom pattern has three low points on a price chart.
And you’ll spot it after a strong downtrend.
Behind the scenes….
Sellers face rejection at the support region. And it happens three times in a row.
Hence the name — tripple bottom.
More points…
The tripple bottom is a bullish reversal pattern.
A bullish reversal pattern signals that prices may rise higher in later timeframes.
And recover from a strong downtrend.
So…
The three troughs are a signal that is building up.
How?
After the third bounce completes, the price breaks the resistance.
And traders watch for the price to break the resistance line above the troughs.
Next…
Once prices break above the resistance zone, traders look for an opportunity.
So, there is one main opportunity with a tripple bottom chart pattern.
And it is joining a market with a clear uptrend breakout.
How Expert Traders Analyze Tripple Bottom Patterns
You need to know this about tripple troughs:
- First, sellers are in control of the market.
So prices fall in a clear bearish trend.
But sellers face rejection at a support level.
So…
Prices rise. Buyers attempt to push prices higher.
But buyers lose at resistance.
The resistance is also the neckline of the triple bottom pattern formation.
2. For a second time, sellers overcome them.
So…
Prices fall again.
And rest at the support level.
Buying pressure pushes prices higher.
And again, face resistance at the neckline.
So… with weak buyers — selling pressure resumes.
And prices drop again. To the support level
3. A third time, buyers make another trial.
And raise prices back to resistance.
But this time around, breaking past the neckline.
So, prices face rejection three times at support.
Finally, buyers gain control of the market. And push prices past the level of resistance.
With a triple bottom, buyers overcome sellers.
And prices break out into a bullish trend.
The breakout is the key target of a trader looking for an opportunity with a triple bottom pattern.
Avoid these Mistakes While Trading the Tripple Bottoms Pattern
First…
Avoid trading a tripple bottom against the trend. Especially in the same timeframe.
Remember, the trend is your friend.
For example:
If prices are on a downtrend on a daily time frame. And a tripple bottom forms on a four-hour chart.
Avoid trading that.
It’s best to work with a clear downtrend.
Plus, if the pattern is on the same timeframe.
Secondly, stick to your risk management rules.
Why?
It’s true.
A clear tripple bottom pattern may form.
But the bullish breakout can fail. That’s what you call a false break.
A false break shows prices trending in direction. Only to make sudden reversals.
The. pattern is not a 100% guarantee of profits.
So…
Again, you must stick to correct trade risk management rules.
Expert Guide to Trading the Three Troughs Pattern
You’ll pay attention to two key points here.
They will help you trade the tripple bottom market prices formation like an expert.
First, know that the pattern signals a market reversal.
After a bearish trend, prices fall into an accumulation phase or stage.
The market accumulation stage involves buyers stepping in.
Markets are in a zone of demand. And the low prices attract buyers.
Second, buyers from institutions open long positions.
And eventually, buyers gain momentum.
Buyers overcome selling pressure.
And eventually, gain control of the market from sellers.
What follow?
Prices keep rising higher.
And a bullish reversal in prices happens.
Buyers, now in control of a market, push prices higher.
Trading the pattern you target to take profits as prices get into resistance zones.
Trade Entry: See How Experts EnterTrades with Tripple Bottom Price Formation
Experts trade triple bottoms with three things in mind.
- No fear
- No greed
- Great patience
To combine the three — you work with a strategy.
A strategy is your set of trading rules.
Have them written down.
And always refer them before opening a position.
This is a MUST!
Watch patiently as a tripple bottom forms to completion.
And only join once the prices break above resistance.
Setting the Stop Loss Position the Smart Way and Avoid Stop Hunting
Your stop-loss position is a safe exit route in case prices move against you.
Stop hunting arises when markets move slightly in the opposite direction.
Problem?
Too close stops get hit.
And your trade closes with a small loss. It’s known as stop hunting.
Shortly after, prices recover.
The slight move is deliberate.
Big money traders trick you with that.
The solutions….?
One: Place stops with a reasonable risk-to-reward ratio.
A good risk-to-reward ratio allows enough pips to avoid getting stopped too early.
Two: Only pick high-probability trading setups.
You only take a few trades with reasonably high returns.
Take high-quality trades.
Stay away from opening positions without following your strategy.
Best Levels: Setting Take-Profit and Stop Loss Positions to Lock Profits
Here, I’ll guide you on the best ways to trade the triple bottom pattern.
See…
A triple-bottom pattern has clear entry and exit prices.
A precious swing high position is your best take profit position.
Keep monitoring trade progress…..
Once your trade goes into profit, you can adjust your stop loss position.
Start by raising it.
And lock profits halfway through the bullish break.
Plus, if the price rises above the last swing high — lock profits by raising the SL higher.
That is a very helpful tip….
Allow your trade to carry on to the highest price.
And ensure the SL position is well set to lock maximum profits.
If prices shoot higher raise your stop loss.
And in case prices drop, your Stop loss position allows you to exit with good profits.
Pros and Cons of the Tripple Bottom Pattern Formation
The triple bottom trading strategy has pros and cons.
So, as you prepare to trade check out both sides.
The idea is to help you build on the advantages. While you also watch out for the disadvantages.
So you will develop a strategy that gives you the best trading outcomes.
Pros of a Tripple Bottom Pattern:
- A triple button is very easy to locate on a chart.
- It’s a highly reliable price pattern formation. It signals a bullish trend reversal.
- Has a high potential for good profits
- The pattern presents an effective strategy. And you can enrich its analysis with other indicators.
- Some good examples are the MACD and Fibonacci ratios.
Cons of a Tripple Bottom pattern:
- The triple bottom pattern is not frequent in appearance.
- So you get very few chances to trade.
- Secondly, you need to confirm trend reversals with other technical indicators.
Frequently Asked Questions on the Tripple Bottom Pattern
Q: What is the success rate of the tripple bottom pattern?
A: There is no standard success rate for the triple bottom pattern.
Success in trading depends on many things.
Part of it includes the willingness to learn on what works. Plus, the individual trading discipline.
You have to stick to good trading habits. And they include learning to trade without fear and greed.
Q: How does a tripple button relate to the double bottom pattern?
A: Both patterns are signals of a trend reversal.
For the double bottom, buyers overcome sellers with two trials.
While for a triple bottom, buyers make three trials.
In both cases, buyers develop interest. Or the demand for the currency pairs is high at the low price or support zones.
Q: Is there a Quadruple bottom pattern?
A: Yes.
A quadruple bottom happens.
And you will find four trials of buyers against sellers.
It is an extension of the triple bottom pattern.
The only difference is it takes buyers an extra attempt to push prices past seller control.
Conclusion
In summary, you’ll know what a triple bottom pattern is.
Plus, the golden rules of price analysis and trading in very simple explanations.
It helps you know what prices are saying from a look at the candle sticks.
And the most probable next move in prices. That’s your key guide to trading the tripple bottom pattern profitably.
Specifically, you’ll find the notes to help you pick the correct signals.
I’ve shared the pros of the triple bottom pattern. And also the cons to watch out for.
There’s an FAQ section. Covering your burning questions on the triple bottom pattern.
Now to you…
Do you have an additional point on trading the triple bottom pattern?
Drop me a comment below.
