A gradual, bowl-shaped turn from a decline into an advance. Selling slowly dries up before buyers gradually take control.
How to identify it
- Smooth U-shaped curve without sharp spikes
- Volatility contracts at the base
- Breakout occurs above the left rim
Entry
Buy a break above the rim or a pullback into it.
Stop loss
Below the most recent higher low on the right side of the bowl.
Target
Bowl depth projected above the rim.
Invalidation
Price rolls over and breaks back under the right-side low.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your rounding bottom trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.