I noticed that many traders miss one of the most reliable trend reversal signals — the triple top and triple bottom patterns. Rare, but powerful. When I see them on a chart, I understand: the market is preparing for a serious move.

Let’s break down what this is, exactly. A triple bottom is when the market tries to break new lows three times, but each time bounces back at roughly the same level. It looks like the letter W. This is a bullish signal: sellers have exhausted themselves, and a recovery is about to begin. The opposite is the triple top, when three attempts to rise above one level fail. This is a bearish pattern that warns of a correction.

I remember that in April 2021 BTC started a major correction and found support at 29800 dollars. This was the first attempt at a bottom. Then the surge to 42444, the drop to 28726 — the second attempt. And the third at the level of 29258. Classic triple bottom trading — and indeed, after that, Bitcoin aggressively shot up to new highs. These are exactly the kinds of moments where you can make a decent profit.

How do you trade this pattern correctly? First, wait for confirmation. For a triple bottom, the price needs to break above the high between the three lows. I’ll use an example from Ethereum in summer 2021: three bottoms at the levels of 1728, 1697, and 1716 dollars. The high between them is 2912. Enter a long position specifically there, on the breakout above 2912.

I set the stop-loss conservatively — below the lowest bottom, in this case 1697. I calculate the take-profit using a simple formula: I take the pattern height (2912 minus 1697 = 1215 dollars) and add it to the entry price. That comes out to 4127 dollars. Usually, the market covers the same distance after the breakout.

With the triple top, everything is the opposite. Three unsuccessful attempts upward — a signal to reverse downward. Confirmation comes when the price breaks below the low between the three tops. This is an excellent opportunity for shorts or to exit long positions.

But there are important points you can’t ignore. First, don’t enter before confirmation. Beginners often see three attempts and immediately open a position — that’s a mistake. The pattern may not fully form. Second, watch the volume. A breakout on low volume is often a false one. But if volume increases as price moves in the direction of the breakout, that’s a good sign.

One more point: small altcoins often don’t have enough liquidity for the breakout to happen properly. So triple bottom trading works best on large assets — BTC, ETH, and other top-100 projects. For smaller tokens, the reliability of the pattern drops.

By the way, don’t confuse the triple bottom with the “head and shoulders” pattern. They’re similar, but in head and shoulders the middle peak is higher than the side peaks, while in a triple bottom all three points are roughly at the same level. The result is similar — a trend reversal — but they form differently.

An important point: always set a stop-loss. No pattern works 100 percent. Even a confirmed triple top or triple bottom may fail. That’s why risk management isn’t just a recommendation — it’s a necessity for survival in the market.

In general, if you’re catching these patterns on the right assets, waiting for confirmation, and following the rules of risk management, your chances of a successful trade increase significantly. It’s not magic, but it’s not chance either — it’s technical analysis that works.