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Trading and Investment Terminology

Rounding Bottom

Rounding Bottom is also referred to as “saucer” as it resembles a clear inverted “U” image.

The pattern signals that the existing downtrend is about to finish and the possibility of an uptrend to commence.

It creates an opportunity to go long.


Number 1: Downtrend

Number 2: Rounded bottom

Number 3: Neckline


The Rounding Bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom and represents a long consolidation period that turns from a bearish bias to a bullish bias.

  • Prior Trend
  • Decline
  • Low
  • Advance
  • Breakout
  • Volume