Rounding Bottom

A Rounding Bottom is a gradual, U‑shaped reversal pattern in technical analysis that signals a potential shift from a downtrend to an uptrend. It forms as price action slowly declines, then flattens, and eventually rises in a smooth, bowl‑like curve, reflecting weakening selling pressure and accumulating buying interest over an extended period.

Traders watch for a breakout above the pattern’s resistance level as confirmation of the bullish reversal, often using it to time entry points in stocks, forex, or commodities; for example, a rounding bottom appearing after a prolonged market decline can precede a sustained rally lasting several weeks or months.