Rounding Bottom Pattern
Original schematic showing the guide's principal visual relationships.
Pattern anatomy
A gradual shift from declining to rising prices as selling pressure fades and accumulation develops.
Falling slope → flat base → rising slope, often accompanied by a gradual volume recovery.
How it works
Identify the prior trend first, mark repeated swing highs and lows, then draw only the support, resistance, or neckline justified by those pivots. A pattern remains provisional until price closes beyond its confirmation boundary; visual resemblance alone is not enough.
How to read it
The right side should show improving highs and lows rather than a single spike. A break above the left-side resistance strengthens confirmation.
Confirmation checklist
Look for an established prior trend, a completed boundary break, and preferably expanding volume or momentum confirmation. A reversal pattern formed without a trend to reverse is weaker evidence.
Limitations and false signals
The long formation period makes the endpoint hard to identify, and event-driven rebounds can resemble a base without durable accumulation.