Trading
Three tests of the same low that hold, with buyers stepping in at the same place each time.
What you are looking at
Three troughs at roughly the same price, separated by rallies. The highs of those rallies form the resistance line.
How traders act on it
A close above that resistance is the trigger, and volume expanding on the break is what separates it from another failed bounce.
When it fails
Losing the low on a fourth test usually means the level is gone, and the drop tends to be quick precisely because the level was so well defined.
Failure is normal and it is not a problem, provided you decided your invalidation level before entering and sized the position so that being wrong is survivable. See risk management.
Context that changes the odds
| Factor | Improves the setup | Weakens it |
|---|---|---|
| Higher timeframe trend | Pattern agrees with the daily or weekly direction | Pattern fights the larger trend |
| Volume | Expands on the breakout | Breakout happens on thin volume |
| Duration | Formed over many candles | Formed over three or four candles, which is mostly noise |
| Level confluence | Trigger sits at a well tested level | Trigger sits in empty space with no history |
| Market conditions | Trending, orderly market | Choppy range, where nearly every pattern fails |
Other patterns
Common questions
How long should a triple bottom take?
What confirms the breakout?
Where to go next
Practice spotting these
We go through live charts together and separate the real setups from the shapes your brain wants to see. That second skill is the harder one.