Rounding Top Chart Pattern — How to Spot and Trade It
7/6/2026
A slow, dome-shaped rollover — enthusiasm fades gradually into decline.
In plain words
A sunset — bright, then dimmer, then gone before you noticed the change.
What the classic books say
The Rounding Top is a reversal pattern with reference reliability Medium and illustrative behaviour of ~60-65% follow-through (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Slow to form — patience required.
Level by level
Beginner
Price stops rising in a gentle arc — buyers quietly leave one by one.
Intermediate
Distribution without drama: momentum decays before price does.
Advanced
The dome's rim (prior support shelf) is the trigger; volume often mirrors the dome inversely.
Trade plan (educational template)
- Entry: On the break below the dome's support rim.
- Stop-loss: Above the dome's right shoulder area.
- Target: Dome height projected below the rim.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Shorting the middle of the dome
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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