spot_img
HomeCHART PATTERNRounding Top

Rounding Top

-

The rounding top chart pattern is a bearish reversal that occurs after an uptrend on a chart. The rounded top is formed after an uptrend in price action stalls out near a peak and goes sideways into a range before slowly going lower to create lower highs and lower lows. The pattern forms a downward sloping curve from the top and downward on both sides of the chart. A rounding top formed on a chart looks like the shape of a wide upside-down letter U.

Rounding tops are patterns used in technical analysis to identify price levels to exit long positions and can also be short selling set ups. This pattern signals a potential top may be put in on a chart. This pattern can signal the end of the previous uptrend and the beginning of a move lower.

Rounding tops are found at the end of extended upward trends and may signify a reversal in long-term price movements. This is a very slow pattern that can take many candles to form with a slow-motion uptrend on the left side and a slow-motion downtrend on right side of the chart. Traders should be aware of the slow nature of this pattern and how price spends most of its time in a range before finally rolling over into an eventual downswing.

Rounding top patterns can form on any time frame but the traditional pattern interpretation develops over weeks and months on the daily chart on longer time frames. The inverse of the bearish rounding top is the bullish rounding bottom that shows the opposite price action pattern.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Technical Analysis For Beginners (The Ultimate Guide)

Technical analysis is the art and science of reading charts to quantify the trend or trading range price is in, the path of least resistance for the next directional move, the area of value on the chart, and create good risk/reward ratios by defining key technical levels.

Common Mistakes in Technical Analysis

Technical analysis can be both an art or a science based on how you use it. It is very easy to become too rigid in its practice believing it can become too flexible whatever you want to see. 

Forex Signals in Indonesia

Free Forex signal, Technical trading analysis in Indonesia are provided by top forex trading experts. Join and Start receiving forex signals.

Forex Signals In Canada

Forex Signals In Canada are provided by top forex trading experts. Daily opportunities for forex signal with expert advice and guidance.

Follow us

23,698FansLike
10,400FollowersFollow
743FollowersFollow

Most Popular

ADVERTISEMENTS

- Advertisement -spot_img