Reversal Chart Patterns

Rounding Tops and Bottoms

Slow, sweeping changes of control — the gentle U and ∩ that mark gradual reversals.

Not every reversal is sharp. A rounding bottom (a 'saucer') is a slow, curved base where a downtrend gradually flattens, stalls, and curls back up — control changing hands over many candles rather than in a single spike. A rounding top is the inverted dome at highs.

What it shows

The smooth curve reflects a patient, grinding shift in sentiment: sellers slowly exhausting and buyers gradually returning, with no single dramatic candle. Volume often traces a matching bowl — high into the decline, drying up at the base, then building again as the new trend starts. These patterns take time, which is exactly why they tend to be durable when they do resolve.

slow base, then breakout ↑
A slow saucer base: the downtrend flattens, curls up, then breaks out.

Trading it

Because rounding patterns lack a sharp trigger, traders often use a horizontal breakout level — the high of the rim — as the confirmation, much like a neckline. Entering early inside the curve is lower-risk but more speculative; waiting for the rim break is later but more confirmed. The slow build also gives generous, well-defined invalidation below the base.

Check your understanding

  1. 1. A rounding bottom is…

  2. 2. It reflects a sentiment shift that is…

  3. 3. Volume during a rounding bottom often…

  4. 4. A common confirmation trigger is…

  5. 5. Rounding patterns tend to be…

Answer all 5 to check