A rounding bottom pattern is a bullish reversal formation that looks like a smooth “U-shape” on the chart, showing a gradual shift from selling pressure to buying pressure. In this pattern, price slowly declines, then stabilizes at the bottom, and finally starts rising with increasing volume, indicating growing buyer confidence. The curve reflects a transition phase where the downtrend loses momentum, accumulation happens silently, and buyers begin to dominate. A breakout above the pattern’s neckline (the highest point on the left side) confirms the reversal and suggests the start of a new uptrend, often leading to sustained upward movement.