Rounding Bottom
BullishReliability: MediumAlso called · saucer, cup base
A gentle U-shaped curve where the trend turns over slowly.
How to spot it
- It turns smoothly, without a sharp low
- Volume reaches its minimum through the base
Why this shape forms
Direction changed gradually rather than snapping. Sellers and buyers swapped places over a long stretch, which is why there is no sharp low to point at.
Where it actually means something
It shows up after a quiet, drawn-out decline. Months to complete is normal, not unusual.
What else to check
Watch for volume returning on the right-hand side of the curve. A round shape with no volume may just be a neglected chart.
This means you're wrong
Void if price makes lower lows again on the right side of the U.
The mistake beginners make
It can take months to complete. Entering impatiently just costs you opportunity.
Easy to confuse with
It is the front half of a cup and handle. One more shallow dip at the right edge makes it a cup and handle; straight up makes it a rounding bottom.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.