Get started

Rounding

Rounding bottom breakout pattern Learning. Educational purposeThis is a chart of indiamart, here i am sharing to learn some logics of rounding bottom along with reasons, targets and stop loss. Here price has formed rounding bottom, and now it has given breakout along with good intensity of volume at same breakout candle, with supporting views by rsi above 60 at breakout, along with macd running positive crossover and now above zero line. if price retest the neckline of rounding bottom and rises again then probabilities of win are increased. here stop loss should be bottom of rounding pattern and targets should be double of total depth of rounding bottom to neckline, so our risk rewards ratio would be at least 1:2 price challenging upper bollinger band supporting indicators Disclaimer I am not sebi registered analyst My studies are for educational purpose only Consult your financial advisor before trading or investing
NSE:INDIAMARTEducation
by RK_Chaarts
Trading Patterns 101 - The Rounding Top patternWhat is a Rounding Top? • A rounding top is a chart pattern that graphically forms the shape of an "Inverted U". • Rounding Tops are found at the end of an uptrend trend and signify a reversal • It is also referred to as an inverted saucer. • Ideally, volume and price will move in tandem. Parts of a Rounding Top: A rounding Top chart can be divided into several main areas: • Advance • Consolidation • Decline Important aspects: 1. Prior Trend: There must be a prior uptrend before the formation of the top. The stock may trade flat before forming the pattern. 2. Advance: The first portion of the rounding top is the advance that leads to the high of the pattern. This rise can take on different forms: some are quite jagged with a number of reaction highs and lows, while others trade in a more linear fashion. 3. High: The high of the rounding top can resemble an “Inverted V” top, but should not be too sharp. Because prices are in an uptrend, the possibility of a buying climax and upthrust exists that could create a higher spike. 4. Decline: The decline from the highs forms the right half of the pattern and should take about the same amount of time as the prior advance. 5. Breakdown: Bearish confirmation comes when the pattern breaks down from the reaction lows and ultimately, the neckline. 6. Volume: In an ideal pattern, volume levels will track the shape of an inverted rounding top: high at the beginning of the advance, low at the end of the advance/consolidation, and rising during the decline. Example: Like always, if anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it. Happy learning. Cheers!
Education
by johntradingwick
11
Buy Mahindra & MahindraMahindra & Mahindra is likely to rise tomorrow from 695 that is today's closing. Stock has taken support from 674 and closed at 684 on 5 th February and it is very likely to cross the 1st resistance of 700 if it crosses 700 then stock will be bullish tomorrow. I hope stock will respect rounding bottom pattern and will not breakup in between. If there is a breakup and stock closes below 686 then it can act as strong indcation of trend reversal. You can buy Mahindra & Mahindra at 690 Target at 730 and Stoploss at 670
NSE:M_MLong
by Anshulamrit