Chart Pattern Triple Bottom
Please note that the information about expected price targets provided by Auto Chart Patterns isn't a recommendation for what you should personally do. Do not take this data as investment advice. It should only be used for education and research. As with any trade, always look first and then leap.
Triple bottom is a reversal pattern formed by three consecutive lows that are at the same level (a slight difference in price values is allowed) and two intermediate highs between them. It is expected that after the price reaches the third low and then turns around and goes above the level of the intermediate maximum, then further price growth will continue further by about the difference between the highs and lows.
The indicator searches for patterns on the last 600 bars. The pattern consists of lines indicating price movements (Price Line) and neck lines (Neck Line). The neck line is drawn along the highest of the intermediate maxima. The start and end points of each price line, except for the last one (point 7), are located in 5/5 pivots. Point 7 is located at the intersection of the last price line with the neck line. In the In Progress mode, the indicator looks for not only formed, but also emerging patterns. The third bottom of such a pattern may not be in the pivot, and the price lines that form it will be dotted.
The pattern is considered to be formed when, after the appearance of the third bottom, the price (close) rises above the neck line. The dotted horizontal line that ends with the Target label indicates the expected price level after the pattern has formed. As new bars appear, the line extends to the right until the last bar, until the pattern status changes from Awaiting to another. The label tooltip shows the price and the current status of the pattern. When the status changes, the color of the label also changes. There are 4 statuses in total:
- Awaiting. The price did not reach the expected level and did not go below the last bottom.
- Reached. The price reached the expected level.
- Failed. The price did not reach the expected level and went below the last bottom.
- Indefinable. The indicator cannot unambiguously determine the status of the patterns.
If the indicator finds two intersecting patterns, then preference is given to the one whose status is Awaiting. If the status of the intersecting patterns is Failed or Reached or the status of both is Awaiting, then the chart will display the pattern with the most similar values of the price of the bottoms, i.e. more accurate. A pattern with the Indefinable status is deleted if it intersects with a pattern that has a different status.
Alerts:
- New Pattern. It is triggered when a new pattern appears on the chart. A pattern is considered new if it has a different position of the first or second bottom or one of the intermediate maximum.
- Pattern Formed. It is triggered when, after the appearance of the third bottom, a bar appears that has closed above the neckline.
Inputs:
- Patterns - Defines which pattern will be drawn depending on its status. Possible values: All, Awaiting and Reached, Only Awaiting, Last Awaiting. If Last Awaiting is selected, only one pattern with the Awaiting status will be displayed, the first point of which is located to the right of all the others.
- Price Targets - Defines which price targets will be drawn depending status of the pattern. Possible values: All, Only Awaiting, Awaiting and Reached, None.
- Trend Height – Sets the required height of the trend preceding the pattern relative to the height of the pattern itself. The height of the pattern is the difference in the price of the minimum of the bottoms and the maximum of the intermediate highs. Percent value.
- In Progress – Search for patterns that have not been fully formed yet.
- Bottoms – The maximum allowable difference in the depth of bottoms. The depth of the bottom is calculated from the highest of the intermediate maxima. Percent value.
- Intermediate Maxima – The maximum allowable height difference of intermediate maxima. The height of the maximum is calculated from the lowest of the bottoms. Percentage value.