How does rounding work in trading platforms?
1 Answer
<p id="isPasted">A rounding bottom looks similar to the cup and handle pattern but it doesn't experience the temporary downward trend of the "handle" portion.</p><p>The initial declining slope of a rounding bottom indicates an excess of supply that forces the stock price down. The transfer to an upward trend occurs when buyers enter the market at a low price. This increases demand for the stock. The stock breaks out and will continue in its new upward trend when the rounding bottom is complete.</p><p><em>The rounding bottom chart pattern is an indication of a positive market reversal. Investor expectations and momentum, known …</em></p>
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