The rounding bottom pattern is a technical setup for the patient trader.  This is because the pattern can take quite a bit of time to develop before any significant price moves begin. In this article, we will walk you through a step-by-step guide for how to trade the pattern and the key things to look for as you manage your position. What is a Rounding Bottom Formation? The rounding bottom is a reversal chart pattern, which develops after a price decline.As a stock is trending lower, the rate of the decline will begin to slow down.  This is followed by a range pattern, which ultimately shifts into a slow gradual increase.  This increase ultimately leads to a bullish move.The pattern will appear symmetrical in nature when comparing the bearish and bullish sides of the formation.Rounding BottomAs you see, the price gradually switches from bearish to bullish. Note that this chart pattern could be found on any time chart. The pattern is truly relative to the time frame you are trading.However, the one thing that each timeframe has in common is that the formation takes a lot of time to complete.There are other chart patterns which are first cousins to the rounding bottom, such as the saucer bottom and half-pipe bottom pattern.Volume Indicator on Rounding Bottom PatternVolume is a key indicator for identifying and validating the rounding bottom pattern.The pattern will start with higher volume as the stock experiences its final plunge lower. This high volume event is then followed up with lower volume as the stock consolidates in a range. Lastly, the volume will begin to pick up again as the stock begins its bullish move higher.Let’s now review the same chart, but now we will include the volume indicator:Rounding Bottoms and Volume IndicatorThe volume indicator is displayed at the bottom of the chart. As you can see in the formation, high volume in the beginning, flat in the middle and volume increase on the way out.A simple method to visually validate the pattern is to draw a line connecting the tops of the volume indicator for each price period.You will notice that volume will also mirror the same rounding pattern. Pretty cool uh?Profit Target for the Rounding Bottom FormationThe potential of the rounding bottom chart pattern is bullish. After the trend switches from bearish to bullish, the expectation is for price to continue expanding higher.But the question we all want answered is, how much higher? The simple answer is the move higher will be at least the size of the rounding bottom formation.Rounding Bottom – Neck LineTo measure the potential of your rounding bottom, you should first identify the neck line of the pattern. To do this you should draw a line across the top of the bearish trend and the bullish trend before the breakout occurs.Then take the distance between the neck line and the lowest point of the pattern. This distance is the size of the rounding bottom pattern.When the price action breaks the neck line, you should open a long position.The blue rectangles on the image illustrate the size and the target of the pattern. The green checkmark indicates the moment when the price action completes the minimum potential of the pattern.The good thing about the rounding bottom pattern is that while it takes a long time to develop, it has a very high success rate.It’s true that good things come to those who wait!Step by Step Guide for How to Trade the Rounding Bottom PatternNow that you are familiar with the rounding bottom pattern, let’s do a deep dive on how to trade the pattern. In our walkthrough we will use the daily charts, but the same concepts will apply to any timeframe.1) Confirming the Rounded Bottom FigureTo confirm the pattern, you need to find a price decrease, which slowly switches to a range followed by a price increase. The strongest confirmation comes when the volume indicator shows high volumes on the decline, flat volumes on the range and increasing volumes on the reversal.2) Rounded Bottom Neck LineAfter you identify the pattern, you need to draw the neck line. To do this, you need to draw a horizontal line across the top of the bearish and bullish sides of the rounding bottom pattern.3) Rounded Bottom BreakoutThe rounded bottom breakout happens when the price penetrates the neck line in a bullish direction. In simpler terms, the stock should show strength as it crosses through the neckline. This strength should display itself in the form of price expansion and increased volume.4) Round Bottom Trade EntryA trader should look to get long once the stock is able to break through the neckline.5) Round Bottom Stop LossIf you read the Tradingsim blog, you know I do not believe in trading without a stop loss.Although the rounding bottom pattern is relatively reliable there are no exceptions to the rule of protecting your capital. After all, nothing is 100% in the stock market.So, now that I have scared you to death, let’s talk about where to place your stop loss order. The answer to this question is in the midpoint of the pattern.A more conservative approach would be below the low of the breakout candle. This way if the stock fails, you can quickly exit the position and look for better trading opportunities.6) Rounding Bottom TargetThe minimum target for the pattern is equal to the size of the pattern when added to the breakout. Once the price hits your target, you should look to exit the position.Rounding Bottom Trading Example#BTC #Blast #BinanceTournament

In the fast-paced world of decentralized finance (DeFi), security concerns have become a pressing issue. One protocol that has recently come under scrutiny is Blast, an Ethereum-based DeFi platform that has locked up nearly $350 million in assets, including ETH, USDT, and DAI. While Blast has experienced significant growth, the lack of essential features like a testnet, transactions, bridge, rollup, or direct transaction data transfer to Ethereum has raised concerns about the security of user funds.
In this article, we will delve into the security issues that Blast has been facing, the risks associated with the platform's no-limit withdrawals, and the steps the protocol has taken to address these concerns. We will also explore the broader transparency issues and regulatory necessities in the DeFi sector, emphasizing the need for more apparent oversight in the crypto market.
The Risk of No-Limit Withdrawals
Critics, including Polygon Developer Relations' Jarod Watts, have pointed out vulnerabilities in Blast's code. One of the main concerns is the platform's no-limit withdrawals, which allow users to withdraw their total staked funds without any restrictions. This feature raises alarm bells as it puts the locked assets at risk of mismanagement or misuse. Without standard Layer 2 (L2) features, investors are solely relying on the integrity of a small group of individuals to secure their funds.
The situation with Blast highlights the broader transparency issues and regulatory necessities in the rapidly growing DeFi sector. A specific function in Blast's code, called "enableTransaction," enables the extraction of significant token amounts without withdrawal limits. This capability not only jeopardizes user assets but also draws regulatory scrutiny, underscoring the urgent need for more apparent oversight in the crypto market.
Blast's Response: Addressing the Security Model
In response to the growing concerns, Blast has taken to social media to clarify its security model. The protocol argues that security is not a one-dimensional concept but rather a multifaceted approach that involves smart contract, browser, and physical security dimensions. Blast contends that immutable smart contracts, often perceived as more secure, can pose significant risks, particularly in complex agreements. Instead, the protocol emphasizes the importance of upgradeable contracts, which, despite potential vulnerabilities, offer adaptability in response to exploits.
Multisig Security and Independent Management
Furthermore, Blast highlights the effectiveness of multisig (multiple signatures) security, a feature also utilized by other L2 solutions like Arbitrum, Optimism, and Polygon. Multisig security involves multiple signing keys that are independently secure, stored in cold storage, managed by independent parties, and geographically dispersed. This approach aims to bolster the protocol's resilience against various security threats.
To enhance security, Blast plans to switch one of its multisig addresses to a different hardware wallet provider within a week. This move is intended to prevent reliance on a single type of hardware wallet, reducing the risk of compromise in case of a hardware-specific vulnerability.
While Blast's responses provide some clarity, the crypto community remains skeptical. Critics question the reliance on multisig setups without timelocks or full transparency, comparing it unfavorably to traditional finance systems.
The Need for Transparency and Regulatory Oversight in DeFi
The concerns surrounding Blast's security model highlight the broader transparency issues and regulatory necessities in the DeFi sector. As the sector continues to grow rapidly, it is crucial to address these concerns to ensure investor protection and market stability.
One of the key challenges in the DeFi space is the lack of clear regulatory guidelines. Unlike traditional financial systems, DeFi operates in a decentralized and often anonymous manner, making it difficult for regulators to enforce rules and protect users. The absence of clear oversight can lead to vulnerabilities and potential misuse of user funds, as seen in the case of Blast.
To address these challenges, the crypto industry needs to work collaboratively with regulators to establish clear and transparent guidelines for DeFi platforms. Implementing robust security measures, such as multisig setups, timelocks, and full transparency, can help build trust among users and regulators alike.
Conclusion
Blast's response to the security concerns surrounding its protocol demonstrates the importance of addressing vulnerabilities and implementing robust security measures in the DeFi sector. By emphasizing the use of multisig security and independent management, Blast aims to enhance the protection of user assets. However, the skepticism from the crypto community highlights the need for greater transparency and regulatory oversight in the rapidly evolving DeFi landscape.
As the DeFi sector continues to grow, it is essential for protocols like Blast to prioritize security and investor protection. By working collaboratively with regulators and implementing best practices, the industry can build a more secure and transparent ecosystem that fosters trust and participation from both users and traditional financial institutions.
#Blast