Triple top triple bottom model What is stock? Let's review some basic information about the two stock investment models above with HVA.
What is a triple top pattern? What is a triple bottom pattern?
The general concept of triple top and triple bottom patterns is shown through the following information:
Stock triple top model
The triple top pattern is understood as the asset value creates three equal peaks and lies at the same support level. The pattern usually occurs at the end of an uptrend at this time signaling a bearish reversal.
The model is represented in the following structure:
- Peak 1: Price makes a high, then drops to a support level.
- Peak 2: After the price decreases, it increases and forms a peak similar to peak 1. However, the price does not exceed the old price and then the price decreases again.
- Peak 3: At this point the price increases again and creates a third peak similar to the previous two peaks. This time the price does not surpass it and begins to show signs of a sharp decline.
See when the price breaks the support level at the peaks. Signs to recognize and determine the market has a downward trend, the direction can increase or decrease sharply. Thanks to that, investors rely on the model to predict the up and down direction of the stock market. invest to make money fit.
In addition, the model also helps investors see the decline of the upward trend. From there, it is determined that the purchased items are exhausted and the market is gradually declining. Thanks to that, quickly recognize the changes in the stock market. Make investment decisions and receive investment knowledge effective .
Triple Bottom Stock Model
The triple bottom pattern is understood as the reversal of the triple top pattern. This pattern only appears when there is a value that creates three consecutive bottoms and has the same equivalent value. With the shape, the middle peaks are higher than the outer bottoms. The pattern is considered a reversal from decrease to increase at a certain time.
Descending triple bottom pattern, Ascending is specifically expressed in the following structure:
- Bottom 1: Price here tends to go from low bottom and gradually increase
- Bottom 2: After increasing at bottom 1, the price tends to decrease a second time, the value is now equivalent to the first time. Then it continues to recover like the first time.
- Bottom 3: At this time, the price drops for the third time, the pattern starts to create a bottom similar to the previous two bottoms. Then the price starts to increase strongly.
This allows you to see when the price exceeds the level set out of the price range between the bottoms. This allows you to recognize the reversal and the beginning of an uptrend. Investors can then quickly predict the value and make a quick investment plan.
The meaning of the triple bottom pattern is that the downtrend of the stock is ending. At this time, an uptrend can start and create a special investment opportunity.
Through the 3 top 3 bottom model above, we can see the advantage that helps investors recognize the increase and decrease of stocks relatively accurately. Thanks to that, predicting the volatility of the stock market is more effective. Increasing the ability to generate profits when investing.
Advantages of the 3 top 3 bottom model
Some outstanding advantages when using the 2 top 3 bottom model in stock investment include:
Advantages of the 3 top model
Each special model will bring different advantages to investors. Due to the unique nature of each model, investors need to grasp the advantages of Descending triple top pattern, increase as follows:
First, it helps investors predict reversals quickly and accurately. With a clear model, investors can easily see that the price does not exceed the old peak after 3 times. From there, they can see a strong signal for changing investment trends.
Next, investors can easily identify support breakdowns. The support breakdown model helps investors see where to place sell or stop loss orders when signs of decline are formed. Thanks to that, the accuracy of making trading decisions increases rapidly.
Simple identification is also an advantage that helps investors use the triple top model in investing. When looking at the chart displaying the stock price, investors can easily recognize when the support price levels are close together and are clearly shown. This helps investors easily apply simple investment strategies to investing.
Relatively high reliability and accuracy: When the 3-peak model is formed correctly, the downtrend often tends to last for a certain period of time. Therefore, investors refer to and gain high profits from this downtrend.
Advantages of the Triple Bottom Model
Some of the following outstanding advantages of the 3-bottom model that HVA has synthesized and applied to obtain: How to invest in stocks effectively:
- Predicting price reversal from decrease to increase: The pattern shows the signal of the end of the price decline and the beginning of an upward trend. Thanks to that, investors grasp the investment opportunity and the potential to increase profits when investing. It is also a sign of stock market increase after a period of decrease.
- Easy confirmation through the break of resistance price level: In this model, investors can easily identify the buying point, buy order and develop a strategy for business. Investors see the price increase when the price starts to break the initial resistance level.
- High reliability: With a long-term uptrend before sharp declines, the end of the downtrend is seen. As a result, the model is confirmed and has a long-term uptrend. The model's reliability is high and accurate when correctly identifying the model's uptrend and downtrend.
- Easy to recognize: This is a relatively easy to recognize model through the limit index. Thanks to that, investors can easily predict the next trend of the model.
With certain advantages, investors can easily make many good transactions. Thereby improving their ability and optimizing their investment strategy. Helping to increase stable profits in the process of investing in stocks.
General advantages
In the two models above, both models have a certain common advantage. Thanks to that, investing based on the predictions of the two models is simpler and easier. However, when applying both models, the investment efficiency is doubled. Thanks to that, investors diversify their investment strategies and investment skills when applying these two models.
The first advantage of applying both models in investment is the reversal prediction signal. Thanks to that, investors can easily grasp the two trends clearly when investing. Combining the two models helps investors grasp all opportunities in the investment process.
Minimize risk through the model based on support or resistance levels / Thereby significantly minimizing risk in the process of considering stop loss points and preserving personal capital. Thanks to that, investing is much safer and more effective in the investment process.
Diversity of market types is the next advantage that investors get when using both models in investment. The model is widely used in many investment markets such as: Currency, commodities, stocks and many other investment channels. Thanks to that, investment is more diverse and convenient.
Based on the outstanding advantages and how to apply the 3 peaks and 3 bottoms model easily, investors can apply two effective stock investment models. Thanks to that, investors can increase their ability to earn high profits in investment. Make investments quickly and effectively.
Conclude
Triple top triple bottom model known in the investment market as a simple and popular model. Thanks to the emergence of models, investment becomes easier, more convenient and faster. From there HVA see the promotion of the formation of sustainable and smart domestic and foreign financial investment.
