# Trader Notes #4 - Rounding bottom

**Published by:** [Teddy](https://paragraph.com/@teddyz/)
**Published on:** 2021-12-06
**URL:** https://paragraph.com/@teddyz/trader-notes-4-rounding-bottom

## Content

Chart patterns are an integral aspect of technical analysis, but they require some getting used to before they can be used effectively. A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past. Chart patterns are the basis of technical analysis and require a trader to know exactly what they are looking at, as well as what they are looking for. Best chart patterns #4 Rounding bottom: A rounding bottom chart pattern can signify a continuation or a reversal. For instance, during an uptrend an asset’s price may fall back slightly before rising once more. This would be a bullish continuation. An example of a bullish reversal rounding bottom – shown below – would be if an asset’s price was in a downward trend and a rounding bottom formed before the trend reversed and entered a bullish uptrend.Traders will seek to capitalise on this pattern by buying halfway around the bottom, at the low point, and capitalising on the continuation once it breaks above a level of resistance.

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