#BOB BULLISH SIGNAL!
In trading, a triple bottom is a bullish technical pattern that forms on a price chart and indicates a possible reversal from a bearish trend to a bullish one. This pattern is characterized by the appearance of three lows (bottoms) approximately at the same price level, indicating that buyers are defending that level as strong support.
Main characteristics:
Three similar lows: The price falls three times to a support level, forming three low points that do not manage to break that level.
Support zone: The level where the lows are formed acts as a barrier that sellers cannot surpass.
Bullish reversal: After the third low, if the price breaks the resistance formed by the highs between the bottoms ("neckline"), the pattern is confirmed and usually indicates a shift towards a bullish trend.
Volume: Generally, volume decreases at the lows and increases when the price breaks the resistance, confirming the bullish movement.
Interpretation:
Strong support: The triple bottom shows that buyers are entering strongly at that price level, preventing further declines.
Confirmation: The pattern is considered valid only when the price surpasses the resistance (neckline) after the third low.
Price target: Once confirmed, traders usually project the bullish movement by adding the distance between the support and resistance to the breakout point.
$BOB
{alpha}(560x51363f073b1e4920fda7aa9e9d84ba97ede1560e)
