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Rounding Top

The Rounding Top pattern forms with a curved shape at the top, signaling a transition from an uptrend to a downtrend.

Rounded topRounding Top: Multiple rounded peaks → Gradual decline

Pattern Details

Category

reversal

Success Rate

71%

Average Move

-16%

Duration

4-8 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Initial phase: Price rise gradually slows
  • 2
    Top phase: Price moves sideways, creating rounded top
  • 3
    Decline phase: Price falls faster than it rose

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price breaks below support line
  • ✓
    Volume typically decreases at the top
  • ✓
    Target = Height of the pattern
  • ✓
    Stop loss placed above the top of the pattern
Trading Tips
  • Pattern forms slowly, requires patience
  • Confirm with inverted U-shaped volume pattern
  • More effective with large-cap stocks

Statistics

Breakout Statistics
Bullish Breakout0%
Bearish Breakout71%
Performance Metrics
Average Rise+0%
Average Decline-16%
Pullback Rate12%