Rounding Top / Dome Top
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 top. The uptrend's momentum gradually weakens, transitions through a sideways phase, and gently turns into a decline, creating an inverted U-shape. Since it takes a long time to form, it is often observed on weekly or monthly charts.
Enter short when price breaks below the rounding top's support line (the price level at pattern start). Since it forms gradually, early recognition and preparation are important.
Project the pattern's height (from the top peak to the support line) downward from the support line breakout point.
Place a stop-loss near the top peak or slightly above the support line. Given the pattern's large scale, position sizing adjustment is important.
Typically, volume is high during the advancing phase, gradually decreases near the top, and increases again during the declining phase.