A very painful condition suffered by pirates when they try to get dressed in the dark. Also, a situation that comes up in technical trading.
A couple basics before we get to the meat of this one. First, technical trading. This form of investment analysis uses chart patterns (the day-to-day movement of a security's or market's price) to discern what's likely to happen in the future.
Second, the hook reversal relates to candlestick charts. In these graphic presentations, the activity of a given day (or month, or whatever time period you are looking at) gets summarized in little pictures that somewhat resemble a candle.
The daily movement (or whatever time frame is the basis of the chart) has a boxy middle with little lines poking out the top and bottom. Its box part represents the open and close on the day, and the vertical line identifies highs and lows.
Okay, basics out of the way. Now, to the hook reversal. It involves a situation where the chart has been trending in one direction. A few days of a stock going up, for instance. Then, the next day, the stock basically holds steady...a sideways move. Except...that sideways move has a lower high than the previous day, and also a higher low.
So it looks like two candles sitting next to each other, but the candle on the left is bigger than the one on the right. It's base is a little lower and its top is a little higher. The smaller candle has a lower high (top is lower) and a higher low (bottom is higher).
The hook reversal is a sign that the trend could reverse. The stock that has been going up might change direction and start going down.
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![Finance: What are Triple Bottom and Triple Top?](https://media1.shmoop.com/video/thumbnails/COURSE.FINANCE.1118_770x433.jpg)
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out
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