Triple Bottom Pattern etc.

In stock technical analysis (TA), a triple bottom pattern is a bullish reversal pattern that typically signals the end of a downtrend and the potential start of an uptrend. It forms when a stock’s price hits a similar low (support level) three times, fails to break below it, and then reverses upward. Here’s a breakdown of its meaning and characteristics:

Key Features of a Triple Bottom Pattern:

1. Three Distinct Lows: The stock price touches a similar price level (support) three times, forming three troughs or “bottoms” with roughly equal lows. These lows indicate strong buying interest at that price, preventing further decline.
2. Neckline (Resistance): The highs between the bottoms form a resistance level, often called the “neckline.” A breakout above this neckline confirms the pattern and signals a bullish reversal.
3. Timeframe: The pattern typically forms over weeks to months, depending on the chart timeframe (e.g., daily, weekly). The longer the pattern takes to form, the more significant the breakout tends to be.
4. Volume: Volume often decreases as the pattern forms (showing reduced selling pressure) and increases during the breakout above the neckline, confirming buyer commitment.

What It Generally Means:

• Bullish Signal: The triple bottom suggests that sellers have repeatedly tried and failed to push the price below the support level, indicating exhaustion of selling pressure. Buyers stepping in at the support level signal strong demand, setting the stage for a potential price increase.
• Reversal from Downtrend: It typically appears after a prolonged downtrend, signaling that the stock may be transitioning to an uptrend.
• Price Target: After breaking above the neckline, the potential price target is often estimated by measuring the distance from the bottoms to the neckline and projecting that distance upward from the breakout point.

Example:

• A stock declines to $50 three times over several months but rebounds each time (forming the triple bottom).
• The neckline (resistance) is at $55, based on the highs between the bottoms.
• If the stock breaks above $55 with strong volume, it confirms the pattern, and the price may target $60 (assuming the pattern height is $5).

Caveats:

• False Breakouts: The pattern is only confirmed when the price breaks and sustains above the neckline. False breakouts can occur, so confirmation with volume or other indicators (e.g., RSI, MACD) is key.
• Context Matters: The reliability of the pattern depends on the broader market trend, volume, and other technical indicators. In a strong bear market, the pattern may fail.
• Not Guaranteed: While bullish, the triple bottom doesn’t guarantee a reversal. External factors like news or market conditions can invalidate it.

 

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How to Draw a Neckline for a Triple Bottom Pattern

A triple bottom is a bullish reversal pattern in technical analysis, characterized by three roughly equal lows at a support level, followed by a breakout above a resistance line called the neckline. Here's how to draw the neckline:

1. Identify the Triple Bottom:
   • Look for three distinct lows (bottoms) on the price chart that occur at approximately the same price level. These form the support level.
   • The lows should be separated by minor rallies (peaks) that fail to break higher, forming a resistance level.
2. Locate the Neckline (Resistance):
   • Identify the two peaks (highs) between the three bottoms. These peaks represent the resistance level.
   • The neckline is drawn by connecting these two peaks with a horizontal line. If the peaks are not exactly at the same price, draw the line at the approximate level where resistance was tested.
3. Drawing the Neckline:
   • Use a charting tool (e.g., TradingView, Thinkorswim, or any stock charting software).
   • Select the horizontal line tool.
   • Place the line across the two peaks between the bottoms. Ensure the line extends to the right to monitor for a potential breakout.
   • The neckline should be horizontal or nearly horizontal, as a triple bottom pattern assumes resistance at a consistent price level.
4. Confirm the Pattern:
   • The triple bottom is confirmed when the price breaks above the neckline after forming the third bottom, ideally with increased volume.
   • The neckline then acts as a support level post-breakout if the price retests it.

Example (Hypothetical):

Suppose a stock has three lows at $50 (Bottom 1), $50.20 (Bottom 2), and $49.80 (Bottom 3), with two peaks at $55.50 and $55.70 between them.

• Draw a horizontal line at approximately $55.50–$55.70 to connect the two peaks. This is the neckline.
• Watch for the price to break above this level (e.g., $56) to confirm the bullish reversal.

Notes:

• The neckline is critical because a breakout above it signals a potential trend reversal from bearish to bullish.
• If the peaks are not perfectly aligned, use the average price or the most recent peak for precision.
• Volume is key: A breakout with strong volume is more reliable.

If you want me to generate a chart to visualize this, please provide:

• A specific stock symbol.
• A timeframe (e.g., daily, weekly).
• Approximate price levels for the bottoms and peaks, or I can search for recent data to approximate the pattern.

Would you like me to generate a chart with hypothetical data, search for a real stock example, or proceed with something else?

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Since you’ve requested a chart for a triple bottom pattern using the most recent data for Hims & Hers Health, Inc. (HIMS), I’ll analyze the provided price data to identify a potential triple bottom pattern and describe how to draw the neckline on a chart. I’ll use the real-time financial data provided for HIMS to inform the analysis and visualization. Note that the finance card above already displays HIMS stock price data, but I’ll interpret it to identify a triple bottom pattern and explain the neckline placement. If a specific chart is needed, I’ll describe a hypothetical visualization based on the data, as I cannot directly generate or display charts.

### Step 1: Understanding the Triple Bottom Pattern
A triple bottom is a bullish reversal pattern characterized by three roughly equal lows at a support level, followed by a breakout above a resistance level (the neckline). The neckline is drawn by connecting the two peaks between the three bottoms. The pattern typically forms after a downtrend, signaling a potential reversal to an uptrend.[](https://www.investopedia.com/terms/t/triplebottom.asp)

 

### Step 2: Analyzing HIMS Price Data
Using the provided real-time financial data for HIMS, let’s examine the 1-month (1M) and 1-day (1D) data to identify a potential triple bottom pattern. The data includes:
- **1M Data** (daily closes, USD):
  - May 6, 2025: $49.8192
  - May 7, 2025: $52.6494
  - May 8, 2025: $50.68
  - May 9, 2025: $51.93
  - May 12, 2025: $55.33
  - May 13, 2025: $64.15
  - May 14, 2025: $60.5994
  - May 15, 2025: $58.4536
  - May 16, 2025: $61.4607
  - May 19, 2025: $62.26
  - May 20, 2025: $60.99
  - May 21, 2025: $53.90
  - May 22, 2025: $53.60
  - May 23, 2025: $54.5301
  - May 27, 2025: $53.45
  - May 28, 2025: $54.90
  - May 29, 2025: $51.87
  - May 30, 2025: $56.80
  - June 2, 2025: $56.7183
  - June 3, 2025: $55.05
  - June 4, 2025: $53.5801
  - June 5, 2025: $52.325
- **1D Data** (June 5, 2025, intraday prices, USD):
  - Open: $54.05
  - High: $55.068
  - Low: $51.13
  - Close: $52.77
  - Intraday lows include $51.13 (early trading) and $51.277 (17:45).
- **Additional Metrics**:
  - Year High: $72.98 (Feb 19, 2025)
  - Year Low: $13.47
  - Previous Day Close (June 4): $53.5801

### Step 3: Identifying a Triple Bottom Pattern
To identify a triple bottom, we need three roughly equal lows (support level) with two peaks (resistance level) between them, followed by a potential breakout above the neckline. Let’s analyze the 1M data for HIMS to find such a pattern:

- **Potential Lows (Support Level)**:
  - May 6: $49.8192
  - May 8: $50.68
  - May 29: $51.87
  - June 5 (intraday low): $51.13
  These lows are close in price (around $49.82–$51.87), suggesting a potential support zone around $50–$51.

- **Potential Peaks (Resistance Level)**:
  - Between May 6 and May 8: May 7 at $52.6494.
  - Between May 8 and May 29: May 13 at $64.15 (a significant peak, but possibly too high for a typical triple bottom).
  - Between May 29 and June 5: May 30 at $56.80 or June 3 at $55.05.
  The peaks around $52.65–$56.80 (May 7, May 30, June 3) could form a resistance zone, but $64.15 (May 13) is an outlier, indicating the pattern may not be textbook.

- **Challenges with HIMS Data**:
  - The lows ($49.82, $50.68, $51.87, $51.13) are reasonably close, supporting a potential triple bottom.
  - However, the peaks vary significantly ($52.6494, $64.15, $56.80), making it difficult to draw a clear horizontal neckline, as triple bottom patterns typically require peaks at roughly the same level.[](https://www.investopedia.com/terms/t/triplebottom.asp)

  - The data shows a general uptrend from early May ($49.8192) to mid-May ($64.15), followed by a pullback to $51.87–$52.325, which may suggest a correction rather than a clear triple bottom after a prolonged downtrend.

Given the volatility (12.29% daily volatility, beta 3.29) and recent price action, the HIMS chart doesn’t perfectly align with a classic triple bottom pattern in the 1M timeframe. The pattern requires a prior downtrend, three equal lows, and a breakout above a horizontal neckline, but HIMS shows a bullish trend with a recent pullback. However, I can hypothesize a triple bottom using the support zone around $50–$51 and approximate a neckline for visualization.[](https://www.tradingview.com/symbols/NYSE-HIMS/)[]

(https://www.investopedia.com/terms/t/triplebottom.asp)

 

### Step 4: Drawing the Neckline
Assuming a triple bottom with lows around $50–$51;EA1:EE51 (May 6: $49.8192, May 8: $50.68, May 29: $51.87), the neckline would connect the peaks between these lows. Let’s use:
- Peak 1: May 7 at $52.6494
- Peak 2: May 30 at $56.80 (or June 3 at $55.05, closer to a consistent level)

The neckline could be drawn around $55–$56, connecting the peaks at $55.05 (June 3) and $56.80 (May 30), as they are closer in price than the $64.15 peak. This neckline would be approximately horizontal at ~$55.50.

### Step 5: Hypothetical Chart Description
Here’s how the chart would look based on the HIMS data:
- **X-Axis (Time)**: Daily chart from May 6, 2025, to June 5, 2025 (1M timeframe).
- **Y-Axis (Price)**: Price range from $49.82 (May 6 low) to $64.15 (May 13 high).
- **Support Level**: Horizontal line around $50–$51, connecting lows at $49.8192 (May 6), $50.68 (May 8), and $51.87 (May 29).
- **Neckline**: Horizontal line at ~$55.50, connecting peaks at $55.05 (June 3) and $56.80 (May 30).
- **Price Action**:
  - First bottom: May 6 at $49.8192, rising to $52.6494 (May 7).
  - Second bottom: May 8 at $50.68, rising to $64.15 (May 13, outlier peak).
  - Third bottom: May 29 at $51.87, rising to $56.80 (May 30).
  - Recent price (June 5 close): $52.77, below the neckline, indicating no breakout yet.
- **Breakout Zone**: A bullish breakout would occur if the price closes above ~$55.50 with strong volume, potentially targeting $61–$62 (distance from support to neckline, ~$5–$6, added to the breakout point).[](https://www.investopedia.com/terms/t/triplebottom.asp)

 

### Step 6: Notes on HIMS and the Pattern
- **Pattern Viability**: The HIMS data suggests a potential support zone around $50–$51, but the peaks are inconsistent, and the prior trend is more bullish than a prolonged downtrend, which weakens the triple bottom formation. A longer timeframe (e.g., 3M or 6M) might reveal a clearer pattern, but the 1M data is inconclusive.
- **Technical Indicators**: Recent posts on X and web sources indicate overbought signals (RSI ~75.8) and a potential pullback to $40–$45 (Fibonacci retracement levels), suggesting caution. The MACD shows a bearish crossover, supporting a pullback before a potential breakout.[](https://www.tradingview.com/symbols/NYSE-HIMS/)[](https://www.tradingview.com/symbols/NYSE-HIMS/)[](https://www.tradingview.com/symbols/NYSE-HIMS/)

- **Volume**: The triple bottom requires decreasing volume during the lows and increasing volume on the breakout. The 1D data shows fluctuating volume, but no clear breakout confirmation.[](https://www.investopedia.com/terms/t/triplebottom.asp)

 

### Step 7: Visualization in the Finance Card
The finance card above likely displays the HIMS stock price chart for the requested timeframe. To visualize the triple bottom:
- Look for three lows around $50–$51 (May 6, May 8, May 29).
- Identify peaks around $55–$56 (May 7, May 30, June 3).
- The neckline would appear as a horizontal line at ~$55.50, connecting the peaks.
- The current price ($52.77 on June 5) is below the neckline, indicating the pattern is not yet confirmed with a breakout.

### Step 8: Confirmation and Next Steps
If you want a specific chart generated with these levels, I recommend using a charting tool like TradingView or Thinkorswim, where you can:
1. Load the HIMS daily chart for May–June 2025.
2. Draw a horizontal support line at ~$50–$51.
3. Draw a neckline at ~$55.50.
4. Monitor for a breakout above $55.50 with high volume to confirm the bullish reversal.

If you’d like me to search for additional HIMS data (e.g., a longer timeframe) or create a hypothetical chart with specific annotations, please let me know! Alternatively, I can suggest specific settings for a charting tool to visualize this pattern using the finance card data. Would you like me to proceed with any of these options?