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Roundingbottom

Rounding Bottom PatternThe Rounding Bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long consolidation period that turns from a bearish bias to a bullish bias. 1. Decline: The first portion of the rounding bottom is the decline that leads to the low of the pattern. 2. Low: The low of the rounding bottom can resemble a “V” or "U" bottom, but should not be too sharp and should take a few weeks to form. 3. Advance: The advance off of the lows forms the right half of the pattern and should take about the same amount of time as the prior decline. 4. Breakout: Bullish confirmation comes when the pattern breaks above the reaction high that marked the beginning of the decline at the start of the pattern. To trade this pattern look for the neckline that is marked on the chart. Once the price breaks through and a candle closes above the neckline, you can then enter the market with a buy order. 5. Volume: Volume levels are not too important on the decline, but there should be an increase in volume on the advance and preferably on the breakout. 6. Target: Add the height of the rounded bottom to the breakout point for an estimated upside target. 7. Stop Loss: The stop loss is placed below the neckline of the pattern.When the price trades below this point, there is less chance of this pattern’s functionality. It’s better to exit the market. The rounded bottom are reversal patterns which identify the completion of the trend and indicate a possible reversal point on price chart. The rounded bottom signals that the existing downtrend is about to finish and the possibility of an uptrend to commence. It resembles a clear “U” image.
NSE:AGARINDEducation
by MandeepSinghKohli
7
METROBRANDWhat Is a Rounding Bottom? A rounding bottom is a chart pattern used in technical analysis and is identified by a series of price movements that graphically form the shape of a "U". Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. This pattern's time frame can vary from several weeks to several months and is deemed by many traders as a rare occurrence. Ideally, volume and price will move in tandem, where volume confirms the price action. How a Rounding Bottom Works A rounding bottom looks similar to the cup and handle pattern, but does not experience the temporary downward trend of the "handle" portion. The initial declining slope of a rounding bottom indicates an excess of supply, which forces the stock price down. The transfer to an upward trend occurs when buyers enter the market at a low price, which increases demand for the stock. Once the rounding bottom is complete, the stock breaks out and will continue in its new upward trend. The rounding bottom chart pattern is an indication of a positive market reversal, meaning investor expectations and momentum, otherwise known as sentiment, are gradually shifting from bearish to bullish. The rounding bottom chart pattern is also known as a saucer bottom given the visual resemblance and bowl-like appearance. The recovery period, much like the downturn, may take months or years to coalesce; thus, investors should be aware of the potentially lengthy patience necessary to realize a full recovery in stock price. #Watchlist #METROBRAND (D):-CMP 737.2 Looks Good For More Upsides :) #Disclaimer:-View shared is for educational purposes only. Conduct your due diligence before making any trading or investment decisions. #StockToWatch
NSE:METROBRANDLong
by Charts_insiders
2
NIFTY - Triple Bottoms on uptrend - 5th Elliot impulsive waveI am seeing this in the NSE:NIFTY cash Daily timeframe. Are you guys seeing the same? Or I am hallucinating (at 10:30 PM night J ) Observations : 3 rounding bottoms formed in an uptrend. There is a clear ascending triangle Now the interesting part is: if we take 20th June as the starting of the wave, then it is aligning perfectly to A, B, C, D waves. All the conditions are met (like wave-3 is max, wave-2 is 60% of wave-1). Going forward Ongoing impulsive wave-5 will be similar to wave-1. So the top is coming around 16575 . The correctional wave-1 (Point-5 to Point-A) coming around at 16200 (Point-A) The correctional wave-2 top (Point-A to Point-B) is coming around (some June-7 level) 16500 . The correctional wave-3 (Point-B to Point-C) bottom coming around (similar level as wave-4 as in uptrend move) 15950 (Point-C).
NSE:NIFTYLong
by pradipandsuvra
3