Below is a slider quiz to test your ability to identify triple bottoms and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
1 / 7
Triple bottoms, like the one shown here at ACB, are composed of three minor lows which bottom near the same price. The highest peak between the three bottoms is the confirmation and breakout price. When the stock closes above that peak, D in this example, it confirms the pattern as a valid triple bottom. If price closes below the bottom of the pattern before closing above the top, then you don't have a triple bottom. This is an example of a triple bottom with valley C slightly higher than A or B, making it easy to differentiate the triple bottom from a head-and-shoulders bottom (which has valley C well below A and B).
2 / 7
Find as many triple bottoms as you can. For help, click here.
3 / 7
I show two triple bottoms in this chart, both labeled 1, 2, 3. These patterns look like big Ws with tall sides AB and CD.
The triple bottom is at 1, 2, 3 and the double bottom is at CD. Notice that point A isn't far above the top of the triple bottom. In this regard, this tri-bot acts as a continuation pattern (price climbs from B to A and then valley 3 upward), not a reversal. It's rare but they do occur.
6 / 7
This is a confirmed triple bottom at 1, 2, 3. It's hard to see, but A closes above the top of the pattern. How far will price climb, to B, C, D or E: none of the above?
7 / 7
The correct answer is E, none of the above. I show two ascending scallops because it's the holidays and I'm in a giving mood.
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