Technical Analysis Guide

A chart pattern used in technical analysis, which is identified by a series of price movements that, when graphed, form the shape of a “U”.  Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. This pattern’s time frame can vary from several weeks to several months and is deemed by many traders as a rare occurrence.

The chart below illustrates a rounding bottom.