A rounded top is a trend reversal pattern that can be used to determine the end of a trend.
The rounded top looks like an inverted letter ''U'', that is why it is sometimes called ''inverted saucer'' in technical analysis books. This figure signals the reversal of an uptrend and the possible beginning of a downtrend. This means that a rounded top may indicate the possibility of opening a short position.
For this pattern to form, price must first rise sharply and then move horizontally for some time, forming a rounded top. Eventually, the price falls below the neckline.
How to trade on the figure of rounded top:
You should open trades using this figure at the base of the neck line. As soon as the price breaks through the neckline and the candle closes behind it, you can enter a "Short" trade. Or my team and I recommend waiting for the retest of the broken level. That gives a higher probability of closing the deal on take profit. Stop loss is always placed behind the level.
