Rounding Bottom

Rounding Bottom
A chart pattern used in technical analysis, which is identified by a series of price movements that, when graphed, form the shape of a "U". Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. This pattern's time frame can vary from several weeks to several months and is deemed by many traders as a rare occurrence.

The chart below illustrates a rounding bottom.

Rounding Bottom

A rounding bottoms look similar to the cup and handle pattern, but does not experience the temporary downward trend of the "handle" portion. The initial declining slope of a rounding bottom indicates an excess of supply, which forces the stock price down. The transfer to an upward trend occurs when buyers enter the market at a low price, which increases demand for the stock. Once the rounding bottom is complete, the stock breaks out and will continue in its new upward trend.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Jennifer Lopez - J.Lo — A slang technical analysis term referring to a rounding bottom in a stock s price pattern. This term got its name from Jennifer Lopez s curvy figure; she is often criticized (or praised) for her round bottom. Traders like the rounding bottom in a …   Investment dictionary

  • Floating point — In computing, floating point describes a method of representing real numbers in a way that can support a wide range of values. Numbers are, in general, represented approximately to a fixed number of significant digits and scaled using an exponent …   Wikipedia

  • JPEG — For other uses, see JPEG (disambiguation). Joint Photographic Experts Group A photo of a cat compressed with successively more lossy compression ratios from right to left Filename extension .jpg …   Wikipedia

  • European Commission roaming regulations — European Union regulation: Regulation (EC) No 717/2007 Regulation on roaming on public mobile telephone networks within the Community (Text with EEA relevance) Made by …   Wikipedia

  • Sedimentary rock — Middle Triassic marginal marine sequence of siltstones (below) and limestones (above), Virgin Formation, southwestern Utah, USA Sedimentary rock are types of rock that are formed by the deposition of material at the Earth s surface and within… …   Wikipedia

  • curling — /kerr ling/, n. a game played on ice in which two teams of four players each compete in sliding large stones toward a mark in the center of a circle. Cf. house (def. 20). [1610 20; perh. CURL + ING1, from the motion imparted to the sliding… …   Universalium

  • MPEG-1 — Moving Picture Experts Group Phase 1 (MPEG 1) Filename extension .mpg, .mpeg, .mp1, .mp2, .mp3, .m1v, .m1a, .m2a, .mpa, .mpv Internet media type audio/mpeg, video/mpeg Developed by ISO, IEC Type of format audio, vid …   Wikipedia

  • Relative articulation — Places of articulation Labial Bilabial Labial–velar Labial–coronal Labiodental Dentolabial Bidental …   Wikipedia

  • Wikipedia:Reference desk/Miscellaneous — The Wikipedia Reference Desk covering the topic of miscellaneous. Miscellaneous #eee #f5f5f5 #eee #aaa #aaa #aaa #00f #36b #000 #00f miscellaneous Wikipedia …   Wikipedia

  • Photoconductive atomic force microscopy — (pc AFM) is a scientific technique.. Multi layer photovoltaic cells have gained popularity since mid 1980s.[1] At the time, research was primarily focused on single layer photovoltaic (PV) devices between two electrodes, in which PV properties… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”