Rounded Patterns

The rounded top and bottom are reversal patterns designed to catch the end of a trend and signal a potential reversal point on a price chart.

The rounded top pattern appears as an inverted 'U' shape and is often referred to as an ‘inverse saucer’ in some technical analysis books. It signals the end of an uptrend and the possible start of a downtrend. This means that the rounded top can indicate an opportunity to go short.

The rounded bottom pattern appears as a clear 'U' formation on the price chart and is also referred to as a ‘saucer’. It signals the end of a downtrend and the possible start of an uptrend. This means that the rounded bottom can indicate an opportunity to go long.