Rounding Bottom
Also known as: Saucer, Bowl
A slow, U-shaped basing process: downward pressure gradually fades and smoothly turns into an uptrend.
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
On a rise above the right boundary (the level of the bowl's left rim).
The depth of the bowl, projected upward from the breakout level.
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.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
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