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Reversal patternsBullishReliability: medium

Rounding Bottom

Also known as: Saucer, Bowl

A slow, U-shaped basing process: downward pressure gradually fades and smoothly turns into an uptrend.

Schematic illustration – idealized shape.

How it forms

Prices first fall more slowly, form a rounded trough and then gradually rise again – without a sharp spike. Volume often follows the same bowl shape (first falling, then rising).

How it is typically traded

Entry

On a rise above the right boundary (the level of the bowl's left rim).

Target

The depth of the bowl, projected upward from the breakout level.

Stop-loss

Below the rounding (most recent higher low).

Where & when – and the limits

A patient pattern that appears mainly on higher timeframes. It develops slowly – false signals arise when the rounding is read in too early.

Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.

Learn more in the academy