Rounding Bottom
A gradual, semicircular base where selling pressure slowly transitions to buying — a long-term bullish reversal pattern.
A Rounding Bottom (or Saucer) forms over an extended period as price gradually arcs from declining to flat to rising, tracing a smooth bowl shape. It reflects a slow shift in market sentiment rather than a sharp reversal.
Volume typically mirrors the price arc — highest at the left edge, lowest at the bottom, rising on the right side. Breakout above the lip (the resistance level at both ends of the saucer) confirms the pattern. Target = depth of the bowl projected upward.
Related Terms
Cup and Handle
A rounded bowl-shaped base followed by a small downward drift (the handle) — a bullish continuation pattern preceding a breakout to new highs.
IntermediateDouble Bottom
Two consecutive troughs at approximately the same price level, forming a "W" shape, signalling support and potential upside reversal.
BeginnerInverse Head and Shoulders
A three-trough reversal pattern at a downtrend bottom: the middle trough is deepest, flanked by two shallower troughs, signalling a trend floor.
BeginnerReversal Pattern
Any pattern that signals a change in the prevailing trend direction — Head and Shoulders, Double Tops/Bottoms, and wedges at extremes are classic examples.
Beginner