Investor Glossary-triple bottomInvestor Glossary-triple bottomInvestor Glossary-triple bottomInvestor Glossary-triple bottomInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Triple Bottom

The HTML to link to this page
 

The triple bottom is a technical analysis pattern that signals the reversal of a long downtrend or the emergence from a trading range. Three troughs of roughly equal price level and a subsequent upside breakout above resistance characterize a triple bottom. The triple bottom pattern can manifest over any time frame, from within the course of a single trading day to many years. During the formation of a triple bottom, overall trading volume tends to decline. The volume of buying begins to increase after the triple bottom makes its third low. A breakout above overhead resistance confirms the validity of the triple bottom pattern and suggests the price trend for a security will be up. Until a security breaks out, traders consider the triple bottom to be a neutral pattern. The highest of the triple bottom formation's intermittent highs is considered to be resistance. After resistance in a triple bottom pattern is broken it becomes support. The breakout price target from a triple bottom is determined by calculating the price differential between the trough and resistance, then adding that amount to resistance. That price differential is then added to resistance to determine the ultimate price target.



Rate this triple bottom definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, in escrow, command economy, class C shares, ex-dividend date, limit order, balance sheet, LIBOR, implied volatility, required rate of return, stock market close, APR, margin rate, Zero Cost Collar, phantom income, 1035 exchange, retained earnings, inflation, diluted share, VIX, real GDP, annual return, current ratio, dividends payable, risk management, quality assurance, FTSE, EBITDA, irrevocable trust, deferred revenue, stock split, deferred tax, FICO score, reverse mortgage, option premium, wholly-owned subsidiary, average price per share, debt service coverage, 1031 exchange, cancelled check, minority interest, liquidity ratio, 401a, 144a, covered put, Key Rate Duration, ex-dividend, open position, per diem


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use