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Roundingtop

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
Nifty spot good short candidateNifty Spot CMP 13000 Elliot wave Study :- Impulse phase is on verge to mature, and if Corrective phase unfold for this whole impulse swing we might see some retracement in coming 1-3 month ,, price wise which can be 0.236% to 0.50% of this whole swing.. more details mentioned on chart.. RSI Divergence :- In last wave of impulse phase , price is making higher high where RSI is making lower high,, Bearish divergence ,, indicated soon the wave is on verge to mature.. Trend line :- At the moment index is trading around Major resistance line which is respected for the whole swing. Chart Pattern :- In last wave of this impulse phase , rising parallel channel formation and rounding top formation are seen,, details on chart..
NSE:NIFTYShort
by RUDRA007
18
Technical analysis rounding top Recognizing:Technical analysis of price information suggests that a rounding top may form at the end of an extended upward trend and that this price pattern may indicate a reversal in the long-term price movement. The main point of recognizing the pattern is to anticipate a significant change in trend from upward trending prices to downward trending prices. Recognizing this kind of a change can allow traders to take profits and protect themselves from buying into an unfavorable market, or strategist to make money from falling prices by short-selling.
NSE:SRF
by reshmi_chauhan1
79
H&S or Round Top - Both portend bearish outlook Price movement has formed H&S. However, right shoulder as we see at it is not pointed. Instead, it appears to be a round top in formation. Both portend a bearish outlook. RSI (daily) is 42 - Bearish. CMP is below 20 and 50 DEMA. Price movement will invalidate round top only if it moves above 3135 - 50 DEMA. Price outlook on a weekly and monthly time frames is still bearish. Therefore, current bearish outlook can be considered as correction Price has key support levels at 2929 on a weekly chart followed by 2834.
NSE:HDFCAMCShort
by datepuru
Nifty view for Next Week Forming Rounding TOP Type of Pattern onNifty view for Next Week Forming Rounding TOP Type of Pattern on Hourly Chart Yesterday closed on Lower point of this pattern In Next Week If BreakDown below 11770 Support zone will lead a fall till 11700-11686-11615 Below 11600 will lead to fall towards "Gap-filling 11426-11591" Still Strong Resistance 12000 to cross Open Interest Data: 11900-12000 Very Strong Resistance 11800 Strong Support 11700 & 11500 Weak Supports to Hold
NSE:NIFTY
by Arrowmoney