Rounding Top Pattern
Original schematic showing the guide's principal visual relationships.
Pattern anatomy
A gradual transition from rising to falling prices that reflects a slow transfer from demand to supply.
Rising slope → flat crest → falling slope, usually over a longer formation period.
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
Momentum fades near the broad crest before lower highs and lower lows emerge. Confirmation is stronger after a break of support beneath the right side.
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 boundaries are subjective and the pattern develops slowly. Short samples often mistake ordinary consolidation for a rounded top.