Triple Bottom Reversal Chart Pattern Video Lecture | Chart Pattern Trading: Learn the Fundamentals - Business Basics

good afternoon everyone this is
Christian with perfect stock alert calm
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please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that today we're gonna be
looking at the triple bottom reversal
chart pattern this is a longer term
chart pattern and takes about three to
six months to form typically it is the
inverse of the triple top reversal which
basically turns an option to a downtrend
this one the triple bottom reversal
turns a downtrend into an uptrend of
course you have to have three low points
roughly equal and location doesn't have
to be to the penny but roughly equal in
this case you have 13:39 1348 and 1309
that's roughly equal showing you that
there is support at this level and price
is coming down bouncing off of that
level once twice three times a lady I
don't know what that means but anyway
and bounces back up here to resistance
resistance level is defined by the
highest reaction high here you had 1698
was a high 17:51
and then you come over here you broke
out so this 1751 would be your
resistance line you draw a line across
that horizontal line and when price
moves out through that or closes above
that line
it turns resistance breaks through it
and that basically starts just you can
see that resistance will develop into
support at that time it pulls back down
bounces around a little bit and comes up
again and starts to make the move higher
with the triple bottom reversal you can
get a target for how high you expect it
to go just like you could with the
triple top reversal and this to do that
you take the highest point 1751 and draw
a line down to support that distance or
that span taking added to the breakout
point will give you roughly a gauge of
how high you expect that to go however
the longer the pattern develops
for example six months nine months the
more powerful that room is going to be
the more substantial that reversal is
and therefore anything six months are
longer your targets are really not going
to add benefits you inning the price
activity is likely to overshoot it
exponentially so don't put too much
weight on your price targets okay as in
the triple top and the triple bottom the
volume in the actual price activity of
the full as it's forming doesn't really
matter you may see an increase on the
low points here or here you can see that
you may even see it really really weak
and no major volume at all however on
the breakout of the triple bottom
reversal it should be notice you need to
have good strong volume to solidify or
confirm that breakout is being true
otherwise you may get yourself caught in
a false rally and that can be avoided
just by somebody looking for situation
we have strong volume confirming the
breakout above previous resistance okay
I will also give you support which
creates sport and then drives price
higher right so that's what you want to
check for on the triple bottom reversal
either breakout point
remember the buy entry opportunity will
be the breakout point as an actually
triple bottom reversal until you have a
breakout you clean this chart up all
right let me draw this out again so once
you have the formation confirmed by a
breakout price close above that that'd
be your first buying opportunity
sometimes you'll get a pullback down to
resistance to test it for support that
gives you a secondary buy and
opportunity and they make the money on
the move up
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