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Multiple Bottom

Trading Term

A multiple bottom is a bullish chart pattern that occurs when an asset tests the same support level three or more times without breaking below it, followed by a trend reversal to the upside. It is an extension of the double bottom pattern and signifies that downward momentum is weakening, as buyers consistently step in to defend a specific price level.

  • Three or More Lows: The price forms multiple troughs at or near the same level, indicating a strong support zone.
  • Volume Confirmation: Often, volume decreases as the pattern develops and spikes when the price breaks above resistance (the high point between the bottoms), confirming the reversal.
  • Resistance Breakout: A breakout above the horizontal resistance line (drawn across the peaks between the bottoms) is considered a bullish signal.

Multiple bottom patterns are considered stronger signals than double bottoms due to repeated confirmation of support, though they often take longer to develop.

TWS chart of multiple bottom pattern.

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