RE: Strap In Troops2 Jan 2022 21:00
The triple bottom chart pattern is a rare, but extremely effective reversal pattern. It’s rare since the successive creation of three equal lows doesn’t happen quite often. Therefore, the double bottom is a more frequent chart pattern as it requires one low less to happen..
On the other hand, its scarcity makes it a very strong and powerful pattern. The sellers are extremely exhausted after three consecutive attempts to break lower, which makes them exposed to a rally as buyers feel much more confident after defending a strong horizontal support.
The triple bottom formation doesn’t have any apparent weaknesses. Actually, its biggest limitation is that it doesn't occur quite often, otherwise it would be the strongest reversal pattern out there.