Education: Triple Bottom Pattern

Let's break down a very solid reversal structure. If the double bottom can wash out the most anxious traders, then the triple bottom is about completely exhausting and destroying the shorts, paving the way for a real breakout. This is an ideal position to establish long positions at the start of a new trend.

It is represented on the chart as follows:
1. Pattern formation: After a long-term decline, the price touches the same strong support level three times, forming three distinct "valleys." After each rebound, the price hits a local resistance level, forming a neckline.
2. Exhaustion of selling pressure: With each downward dip, the trading volume decreases. The third bottom usually appears very weak, indicating the market no longer has enough chips to push the price down further.

What is the underlying logic?
Large funds (market makers) are systematically accumulating chips, earning profits hand over fist. They need liquidity. The three pushes down to the same support level are meant to wash out the last batch of hesitant chips and lure in the short-sellers who believe "the support will break." The spring is compressed to its limit. Once the price breaks above the neckline, shorts will face a massive short squeeze, directly sending the price soaring.

How to operate correctly:
- Entry: Don’t buy recklessly at the bottom based on feelings! Wait for the price to confirm an upward breakout of the neckline. It’s best to wait for a volume-supported bullish candle closing above the neckline (as shown).
- Stop-loss: Place it below the third (rightmost) bottom. Protect your capital and prevent a final manipulation spike.
- Take-profit: Measure the height from the lowest bottom to the neckline, then project the same distance upward from the breakout point. That is our target for locking in profits.

Core principle:
Patience is your greatest advantage. Let the big players finish their manipulation and clear out liquidity. We only enter after the structure confirms a breakout and resistance turns into support!

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