About Rounding Base..
The rounding bottom pattern, also known as the "saucer" or "bowl" is a longer term pattern that is usually identified using a weekly chart. Typically (62% of the time), there is an uptrend prior to the rounding bottom. Prices then begin to fall, followed by a shallow bottoming process, and then prices begin rising at a steeper grade creating the visual appearance of a bowl or the letter "U". The left side of the bowl where the pattern begins is called the "left lip" and the right side of the bowl is called the "right lip". Usually prices hit the right lip at approximately the same price level as the left lip and begin trending sideways or retracing downward to create an area of consolidation. Aa buy signal is triggered when prices close above the resistance line drawn from the left lip to the area of consolidation formed after the right lip; or if there is no right lip, then the price level of the left lip is used as the resistance line.
The average gain for a rounding bottom pattern breakout to the upside before any 20% correction is approximately 43%.
Price of the Right Lip of Pattern + ((Price of the Right Lip of Pattern - Lowest Price in Pattern) * 57%)
Traits that Increase the Historical Effectiveness of the Rounding Top and Bottom Patterns
About Rising 3 Valley
Psychology of Rising 3 Valley
The market psychology of the pattern is as follows: A significant trait of an uptrend is that the trend makes higher highs and higher lows. The second peak in pattern is a higher high. The second valley after the first peak is a higher low. The definition of a new uptrend is complete. The second peak is a higher high which confirms the uptrend. Once prices break above the second peak high, traders buy expecting that the next peak will be a higher high thus confirming the uptrend yet again.
Averaged maximum gain before a 20% retracement is 41%; and that prices pullback to the breakout signal price within 30 days 60% of the time.
Three Rising Valleys Upward Breakout Price Target:
High Price of 2nd Peak + ((High Price of 2nd Peak - Low Price of 1st Valley) * 58%)
The rounding bottom pattern, also known as the "saucer" or "bowl" is a longer term pattern that is usually identified using a weekly chart. Typically (62% of the time), there is an uptrend prior to the rounding bottom. Prices then begin to fall, followed by a shallow bottoming process, and then prices begin rising at a steeper grade creating the visual appearance of a bowl or the letter "U". The left side of the bowl where the pattern begins is called the "left lip" and the right side of the bowl is called the "right lip". Usually prices hit the right lip at approximately the same price level as the left lip and begin trending sideways or retracing downward to create an area of consolidation. Aa buy signal is triggered when prices close above the resistance line drawn from the left lip to the area of consolidation formed after the right lip; or if there is no right lip, then the price level of the left lip is used as the resistance line.
The average gain for a rounding bottom pattern breakout to the upside before any 20% correction is approximately 43%.
Price of the Right Lip of Pattern + ((Price of the Right Lip of Pattern - Lowest Price in Pattern) * 57%)
Traits that Increase the Historical Effectiveness of the Rounding Top and Bottom Patterns
- Taller patterns perform better
- Rounding bottoms within a third of the yearly high perform best
- Rounding tops perform better with higher breakout volume
- Rounding tops with breakouts that are gaps have larger price moves
- Rounding tops within a third of the yearly low perform best
About Rising 3 Valley
Psychology of Rising 3 Valley
The market psychology of the pattern is as follows: A significant trait of an uptrend is that the trend makes higher highs and higher lows. The second peak in pattern is a higher high. The second valley after the first peak is a higher low. The definition of a new uptrend is complete. The second peak is a higher high which confirms the uptrend. Once prices break above the second peak high, traders buy expecting that the next peak will be a higher high thus confirming the uptrend yet again.
Averaged maximum gain before a 20% retracement is 41%; and that prices pullback to the breakout signal price within 30 days 60% of the time.
Three Rising Valleys Upward Breakout Price Target:
High Price of 2nd Peak + ((High Price of 2nd Peak - Low Price of 1st Valley) * 58%)