Rounding Top

Rounding Top

Rounding top is a reversal pattern where connecting the highs of a price pattern represents a convex shape. The volume pattern, on the other hand, is concave, as it has declined in the peak relative to the sides of the price pattern.

Rounding top is characterized by a gradual deceleration of price appreciation followed by a gradual acceleration in price downward -- demonstrating to the observer that money is moving out of the issue.

Rounding top like as any other consolidation pattern, the longer the rounded top takes to complete itself, the higher the likelihood of a sharp price move in the new direction.

Example of Round Top:

ĄĄ