Rounding Bottom

Rounding Bottom pattern is a bullish four-line pattern of the Line Break chart.

The name ‘Rounding’ is given because pattern structure looks like the traditional rounding formation which has witnessed breakout.

A bullish line is followed by a correction of two bearish line before resumption of the uptrend. Fourth bullish line reverses the trend by going above the high of the previous three lines.

This pattern is developed by Definedge and explained in detail with data testing in the book on Line Break Charts by Prashant Shah available for free on Shelf.

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This pattern can be plotted on the chart by adding it from the Add study menu in TradePoint & Patterns in RZone. The pattern is also available in the System Builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.