A worked example that explains the rule, not a stock price. The circle marks the first close beyond the level. The blue line is the target. The orange line is the invalidation. Prices are in the right-hand column, and sessions sit under the volume bar.Hollow green candles closed above their open, and filled red candles closed below it.
Numbers in the example chart
From the same calculation that draws the shape and writes the "Measuring the target" section below.
Trigger level
$79 · at the close of session 66
Target
92$
Invalidation
66$
Pattern height
13$
Chart span
76 sessions
What it is
Three bottoms at one level. Building a slow bottom wears down sellers one after another.
The three lowsThree defenses of one price. Volume shrinks with each.
Resistance lineThe two peaks draw a flat ceiling.
BreakoutA close above it on high volume. The cost here is time: it takes weeks to build, and in options time eats value.
Recognition rules
Three lows of similar depth separated by two peaks.
The two peaks form a flat resistance line.
Volume at the third low is usually the lowest.
Confirmation is a close above the resistance line on high volume.
Measuring the target
The height of the pattern is added to the breakout point.
Where it fools you
It takes weeks to build, and entering before the breakout ties up capital in an asset that is not moving. The cost here is time, not price. It is a real cost in options trading, where time eats value.
Open the daily timeframe for any symbol and draw the pattern yourself. Your drawing is saved per symbol in your browser, and the terminal does not name or detect the pattern.
╱ TrendlineResistance line
⇕ MeasureTarget equals pattern height
We do not detect chart patterns with a numeric rule: telling them apart takes judgment on the chart. Candlestick patterns with a numeric rule are detected daily by the candlestick pattern scanner.
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