What is The triple bottom and triple top formation?

The triple bottom and triple top formations are technical chart patterns used by traders to identify potential trend reversals in the market.

Triple Bottom Formation: A triple bottom formation is a bullish reversal pattern that occurs when the price of an asset falls to a certain level three times, creating three "valleys" that are roughly equal in price. This pattern indicates that buyers have started to outnumber sellers, and there may be a potential uptrend reversal in the future.

Triple Top Formation: A triple top formation is a bearish reversal pattern that occurs when the price of an asset rises to a certain level three times, creating three "peaks" that are roughly equal in price. This pattern indicates that sellers have started to outnumber buyers, and there may be a potential downtrend reversal in the future.

In both cases, traders usually look for a confirmation signal, such as a breakout above or below the neckline, to confirm that the trend is indeed reversing.

It is important to note that these patterns are not always 100% accurate in predicting trend reversals, and traders should use them in conjunction with other indicators and analysis methods to make informed trading decisions. Additionally, triple formations are relatively rare and may take longer to form than double formations, which can make them more difficult to identify.