šŸšØāš”Today Im Going To Tell You About šŸ‘‡

ā€¢Rounding Bottom Pattern

A rounding bottom chart pattern can signify a continuation or a reversal. For instance, during an uptrend an assetā€™s price may fall back slightly before rising once more. This would be a bullish continuation.

An example of a bullish reversal rounding bottom ā€“ shown below ā€“ would be if an assetā€™s price was in a downward trend and a rounding bottom formed before the trend reversed and entered a bullish uptrend.

Traders will seek to capitalise on this pattern by buying halfway around the bottom, at the low point, and capitalising on the continuation once it breaks above a level of resistance.