The Ultimate Guide to Three River Bottom Candlestick Patterns

Last updated: January 4, 2024

Three River Bottom Pattern

The three river bottom candlestick pattern occurs when a stock tests its lows three times and does not decline any further in price:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes three river bottom patterns with the following characteristics:

Typical characteristics

• A stock tests its lows three times
• The three troughs of the pattern don't necessarily have to be at the same price

Examples of use as a trading indicator

• Represents a major bottom

Other interpretations

• If the middle peak in the pattern is the lowest peak, this pattern is known as an inverted three Buddha pattern

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!