A price breakout of the neckline has occurred in the other direction. When the pattern's neckline is broken, enter the market. Look for candle closures above the neckline (for a rounder bottom). When trading the rounded bottom, the stop loss is positioned below the neckline.
The Rounding Bottom is a long-term reversal pattern that works well on weekly time frames. It's also known as a saucer bottom, and it denotes a protracted period of consolidation before the market shifts from bearish to bullish.
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