📈 Rounding Bottom Pattern – Long-Term Bullish Reversal

The Rounding Bottom, also known as a Saucer Bottom, is a long-term bullish reversal pattern. It shows a gradual transition from a downtrend to an uptrend and indicates strong accumulation by buyers.

📘 What Is the Rounding Bottom Pattern?

The Rounding Bottom is a smooth, U-shaped formation that occurs after a prolonged downtrend. It reflects a period where sellers gradually lose control and buyers slowly accumulate positions, leading to a bullish breakout.

• Appears after a long-term downtrend.
• Shape resembles a "U" or saucer.
• Volume usually declines during the decline phase and rises on the breakout.
• Breakout above the resistance confirms the start of a new uptrend.
  
  
  

💡 Market Psychology

- Decline Phase: Sellers dominate initially but gradually lose strength. - Bottoming Phase: Price stabilizes and buyers begin accumulating slowly. - Breakout Phase: Strong buying pressure pushes the price above resistance, confirming a bullish reversal.

✅ Pro Tip: Watch for increased volume on the breakout to confirm the start of a new uptrend.

⚙️ How to Trade Rounding Bottom

1. Identify a prolonged downtrend followed by a U-shaped formation.
2. Wait for the price to break above the resistance formed at the top of the rounding bottom.
3. Enter a buy (long) position after breakout confirmation.
4. Place a stop-loss below the lowest point of the rounding bottom.
5. Set a target using the height of the pattern projected upward.
   
   
   

🏁 Conclusion

The Rounding Bottom pattern is a reliable long-term bullish reversal indicator. Identifying it early and confirming with volume can help traders and investors capitalize on the start of a new uptrend.

“When the Rounding Bottom forms — patience pays, and the bulls take over gradually.”