What Is A Rounding Bottom?

What Is A Rounding Bottom?
What Is A Rounding Bottom?

What is a Rounding Bottom? A rounding bottom is a chart pattern used in technical analysis and is identified by a series of price movements that graphically form the shape of a “U”. Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements.

This pattern’s time frame can vary from several weeks to several months and is deemed by many traders as a rare occurrence. Ideally the volume and price will move in tandem then the volume confirms the trend.






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