Understanding the Triple Bottom Pattern in Forex Trading
monarchcb.com - Ok, traders must have recognized that the type of candlestick pattern that is widely used by traders because of its greater accuracy, is the triple candlestick pattern. However, because this pattern does not occur often, it is because of this that the accuracy is very large. The well-known triple candlestick patterns include the triple maximum and triple bottom patterns.
In the previous review module, we have discussed and studied various patterns and learned to practice forex trading about candlesticks, as we know, which means candlesticks are a type of price chart (chart) to describe and read price movements in the financial market. in a technical way.
Ok, traders must have recognized that the type of candlestick pattern that is widely used by traders because of its greater accuracy, is the triple candlestick pattern. However, because this pattern does not occur often, it is because of this that the accuracy is very large. The well-known triple candlestick patterns include the triple maximum and triple bottom patterns.
In accordance with the theme, so in our review this time we wll discuss and explain the triple bottom pattern in forex trading. These two patterns are actually not much different from the double maximum and double bottom. It's just that, the maximum triple has 3 shoots and a triple bottom
has 3 canyons. The method of identifying the confirmation is also similar, namely the breakdown of the base line. Likewise with the method of speculating the target movement after the pattern is confirmed.
From the picture above it appears that there is a possibility that a pullback will occur to the base from point (7), but it should be noted that this kind of pullback (although quite often) does not always occur. Always, if the base leaks again during the pullback.
The Triple Bottom chart pattern can be used in technical analysis for example on Gold, to calculate the expected retrogression from a downtrend to an uptrend. This chart pattern can be observed when the price of gold can make 3 canyons at almost the same price level.
In closing, please remember that the Triple Bottom is a chart pattern created by the presence of 3 canyons of the same class as a sign that the price has not been able to exceed the lowest price first until the canyon that is formed there are 3 canyons.
Triple Bottom pattern identity:
- Intertwined at the end of the downtrend
- Price can't go above the lowest price first resulting in 3 valleys
- In the third gorge, we observe, if the price rises and holds the resistance line, then it breaks the resistance line until a bullish break out occurs.
- We enter BUY or pending instructions (Buy Stop) above the break out level.
- Do not forget to place a stop loss at the bottom of the break out level and place a take profit as necessary.
