A rounding bottom breakout is a bullish chart pattern that forms after a downtrend where the price gradually stops falling, moves sideways, and slowly starts rising, creating a “U” shaped structure on the chart. This pattern shows that selling pressure is reducing and buyers are slowly gaining control. The breakout happens when the price moves above the resistance level or neckline formed near the top of the pattern with strong volume. It indicates a potential trend reversal and the beginning of a fresh upward move. Traders often look for increased volume and candle confirmation during the breakout for better reliability.