Rounding Bottom / Saucer Bottom
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A long-term reversal pattern where price forms a gradual arc at the bottom. The downtrend's momentum gradually weakens, transitions through a sideways phase, and gently turns into an advance, creating a U-shape. Since it takes a long time to form, it is often observed on weekly or monthly charts and serves as the origin of a major uptrend.
Enter long when price breaks above the rounding bottom's resistance line (the price level at pattern start). Confirming volume increase is important.
Project the pattern's depth (from the resistance line to the bottom) upward from the resistance line breakout point.
Place a stop-loss near the bottom or slightly below the resistance line. Adjust position size according to the pattern's scale.
Volume gradually decreases during the declining phase, reaches its minimum at the bottom, gradually increases during the advancing phase, and surges at the resistance line breakout.