Rounding Top
Definition
A slow, dome-shaped rollover — enthusiasm fades gradually into decline.
Psychology
Price stops rising in a gentle arc — buyers quietly leave one by one.
Real-life analogy
💡 A sunset — bright, then dimmer, then gone before you noticed the change.
Expected direction
down
Entry / Stop / Target
Entry: On the break below the dome's support rim. · Stop: Above the dome's right shoulder area. · Target: Dome height projected below the rim.
Historical behaviour
Slow to form — patience required.
Illustrative success rate
~60-65% follow-through · Medium reliability
Common beginner mistakes
- • Shorting the middle of the dome
Quick quiz — did you understand?
1. Is the Rounding Top generally considered bullish, bearish, or neutral?
2. After a confirmed Rounding Top, the expected direction is usually:
3. Which is a common beginner mistake with the Rounding Top?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.