Rounding bottom
1. Introduction
Rounding Bottom is a bullish pattern, which is formed by a long-term price consolidation at the bottom resulting in a bowl-like pattern. The formation of this pattern means that the long-term sideways trading is about to end, and the stock price is likely to break through upward.
2. Feature
2.1 The pattern is usually formed when the stock price has been falling for a long period of time, and the buying and selling strengths reach an equilibrium, resulting in the stock price going sideways. The buyers' power may be strengthened in the future, forming an expected upward trend;
2.2 The fluctuations at the bottom of the arc are mild, but the duration is long;
2.3 Once the bottom of the arc breaks through upward, the stock price is likely to continue rising.
3. Example
002535 has a Rounding Bottom Pattern on June 18, 2021.
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