Rounding Top
A rounding top is a chart pattern that is used in technical analysis to indicate that a reversal in the current trend is likely to occur. It is a chart pattern that is formed when the price of a security moves in a sideways pattern, forming a rounded top. The pattern is usually seen after an extended period of rising prices, and it is seen as a sign that the current trend is about to reverse. The pattern is usually seen as a sign of a bearish reversal, as the price of the security is likely to fall after the pattern is formed.
History of the Term
The term “rounding top” was first used by Charles Dow, the founder of Dow Theory. Dow Theory is a form of technical analysis that is based on the idea that the market is driven by the collective behavior of investors. According to Dow Theory, the market is driven by the collective behavior of investors, and the patterns that are seen in the market are a reflection of this collective behavior. The term “rounding top” was first used by Charles Dow to describe a pattern that he observed in the market.
Comparison Table
| Pattern | Reversal |
|---|---|
| Rounding Top | Bearish |
| Rounding Bottom | Bullish |
Summary
A rounding top is a chart pattern that is used in technical analysis to indicate that a reversal in the current trend is likely to occur. It is a chart pattern that is formed when the price of a security moves in a sideways pattern, forming a rounded top. The pattern is usually seen after an extended period of rising prices, and it is seen as a sign that the current trend is about to reverse. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Rounding Bottom
- Head and Shoulders
- Double Top
- Double Bottom
- Triple Top
- Triple Bottom
- Cup and Handle
- Flag and Pennant
- Wedge Pattern
- Symmetrical Triangle
