Rounded top and bottom
Another shape which a top and bottom can take is one in which the reversal is “rounded”. The rounded bottom formation forms when the market gradually yet steadily shifts from a bearish to bullish outlook while in the case of a rounded top, from bullish to bearish. The Rounded Top formation consists of a gradual change in trend from up to down. The Rounded Bottom formation consists of a gradual change in trend from down to up. This formation is the exact opposite of a Rounded Top Formation. The prices take on a bowl shaped pattern as the market slowly and casually changes from an upward to a downward trend
