A Rounding Bottom Breakout is a bullish reversal pattern

A Rounding Bottom Breakout is a bullish reversal pattern that develops when price gradually forms a rounded “U-shaped” structure after a prolonged decline, indicating a shift from selling pressure to buying interest. The pattern typically shows a gradual fall, a period of consolidation near the bottom, and then a steady recovery toward the previous resistance zone. A breakout above the neckline/resistance with strong volume confirms the pattern and indicates that buyers are gaining control. After the breakout, the previous resistance can often act as a support zone, while the upside target may be estimated based on the depth of the rounding-bottom formation. Traders should ideally look for sustained price action above the breakout level rather than relying on a single candle.