Rounding Top Pattern Explained

It is a reversal pattern that appears in an uptrend and is represented by a rounding, dome-shaped price movement

Pattern Shape:

Pattern Formation Stages:

At the end of the uptrend, buying pressure begins to weaken against selling pressure
As buying weakens, the distance between bullish and bearish candles gradually narrows
Buyers attempt to maintain control of prices in the uptrend, while sellers aim to reverse the direction in their favor
Selling pressure gradually increases against buying pressure
As buying continues to weaken and selling pressure increases, the downtrend begins to emerge

Utilizing the Pattern:

The formation stages of the pattern can be observed, but it is difficult to determine the exact start of the downtrend. It is preferable to wait until the trend stabilizes and the price begins forming lower highs and lower lows before entering the market

Pattern Target:

It is difficult to define a precise target for the pattern. Previous support levels after the reversal can be used as potential targets

Conclusion:
It is a reversal pattern that forms in an uptrend as a gradual shift from buying dominance to selling control, resulting in a rounded top formation that precedes a downward trend