Rounding Bottom Patterns
Rounding bottom patterns are reversal patterns that develop over the long-term, sometimes as long as several months to several years.
Rounding bottom patterns signal a gradual upswing after a downward trend and are sometimes called saucer bottoms.
Rounding Bottoms Technical Analysis
In a rounding bottoms technical analysis, the chart’s pattern will resemble a cup without its handle. Because rounding bottom patterns develop gradually and over a long period of time, there is usually no confirmation trigger evident. The lack of a trigger event and the fact that both the downward and upward trends occur slowly and gradually with no significant moves in either direction often makes a stock with a rounding bottom pattern difficult to trade.
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Next: Technical Analysis: Moving Averages