All three highs should be reasonably equal, well-spaced, and mark clear turning points to establish support.
The lows do not all have to exactly the same level but should be “close enough”.
That said, patterns where the last bottom is higher than the middle usually provide better results.
The difference is that all three highs of the Triple Bottom will be around the same height, while in the Inverse Head and Shoulders pattern, the second lowe is lower than the first and third high.
Selling pressure is declining so the downtrend is running out of steam.
As with a Triple Top, it is generally thought that the longer a particular trend takes to fully develop, the stronger the significant change in price once a breakdown occurs.
Triple Tops and Bottoms are considered one of the slowest types of chart patterns to fully mature.
For example, before the third high form, the pattern may look like a Double Bottom.
Three equal highs can also be found in a Descending Triangle or Rectangle.
With a Triple Bottom, the support level can be identified by drawing a line at the base level of the high, which forms a “Neckline“.
You can choose to enter into a long position once the price level rises through this resistance level.
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