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ā¢Rounding Bottom Pattern
A rounding bottom chart pattern can signify a continuation or a reversal. For instance, during an uptrend an assetās 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 assetās 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.