Study the triple bottom as a defined sequence of swings, then record both confirmed and failed exits with the same rules.
Identify the swings and the boundary
A triple bottom has three distinct troughs around one support zone, with rebounds between them. Use the higher relevant rebound high as the resistance boundary when the rebound highs differ. Three lows in the same candle cluster are one support test, not three independent swings.
Read the formation in its preceding trend
After a decline, repeated lows can describe a developing base. A third test does not create a measured probability of reversal. Record how much time separates the lows and whether rebounds grow or weaken, then wait for the chosen resistance boundary to be crossed.
Use an explicit confirmation rule
The illustration closes above 56, the higher intervening rebound. Crossing only the lower rebound at 55.5 leaves the broader boundary intact. A consistent rule prevents selecting whichever neckline makes an earlier entry appear successful.
| Measure | Value |
|---|---|
| Confirmation session (first bar is session 1) | 49 |
| Boundary | 56.00 |
| Confirming close | 57.00 |
| Formation extreme | 48.00 |
| Formation height | 8.00 |
| Geometric objective | 64.00 |
Height = |48.00 − 56.00| = 8.00
Objective = 56.00 + 8.00 = 64.00The objective illustrates a measuring convention. It supplies no probability, expected return or evidence that a trade reaches that price. Keep the projected level separate from the actual chart observations and from a written risk plan.
Compare volume on the same daily basis
Compare each swing and the confirming session with this stock’s own daily volume. Quiet activity around a base and expansion on an exit are conventional context, but they do not establish direction or identify who traded. An event can dominate a single volume bar.
| Measure | Value |
|---|---|
| Confirmation volume | 220.00 |
| 20-session average including confirmation | 106.05 |
| Relative volume | 2.07× |
Including the current session in the average differs from dividing by the prior 20 sessions. An intraday comparison at the same clock time uses another denominator. State which one you use before comparing examples.
An exit that does not persist
The alternative path briefly clears resistance and then falls through the support zone. A support area tested three times can still fail. The count of lows cannot replace the later price evidence.
Distinguish nearby formations
A double bottom stops at two tests. An inverse head and shoulders has a deeper middle trough. A rectangle is a two-sided range whose swing count need not be fixed at three.
Keep a reproducible research record
Apply the same swing definition and boundary rule to every chart in a sample. Formations become visible as later bars confirm swings, so preserve the date on which each observation was knowable.
- Record the preceding trend, candle interval, price scale and corporate-action basis.
- Label the swings and write a boundary rule before viewing the later path.
- Record the confirming close, subsequent retest and the price that invalidates the premise.
- Compare volume on a named denominator and retain failed exits as well as resolving examples.
- Review earnings and other events, execution costs and gap risk separately from the geometric drawing.
These formations are studied by reading charts. A list of stocks near a high or low does not identify this pattern.
Sources
- Edwards, Magee and Bassetti, Technical Analysis of Stock Trends, 11th edition: reversal formations and measurement conventions
- StockCharts ChartSchool: Triple bottom (checked October 1, 2026)
Read our data and methodology notes for calculation context. This guide explains research tools and observations. It does not recommend a trade or investment.