Rounded Bottom
Definition
A slow, U-shaped base as sentiment gradually shifts from selling to buying.
Psychology
Price slowly stops falling, flattens, and gradually starts rising — a calm turnaround.
Real-life analogy
💡 A valley you slowly walk down into and gradually climb out of.
Expected direction
up
Entry / Stop / Target
Entry: On a breakout above the rim of the base. · Stop: Below the base. · Target: Depth of the base projected up.
Historical behaviour
Reliable but slow to form; needs patience.
Illustrative success rate
~58-66% on breakout · Medium reliability
Common beginner mistakes
- • Entering mid-base before the breakout
Quick quiz — did you understand?
1. Is the Rounded Bottom generally considered bullish, bearish, or neutral?
2. After a confirmed Rounded Bottom, the expected direction is usually:
3. Which is a common beginner mistake with the Rounded Bottom?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.