Rounding Bottom Pattern Explained

It is a reversal pattern that appears in a downtrend. It is also referred to as the saucer pattern and is represented by a semicircular shape

Pattern Shape:

Pattern Formation Stages:

At the end of the downtrend, selling pressure begins to weaken against buying pressure
As selling weakens, the distance between bullish and bearish candles gradually narrows
Sellers attempt to maintain control of prices in the downtrend, while buyers aim to reverse the direction in their favor
Buying pressure gradually increases against selling pressure
As selling continues to weaken and buying pressure increases, the uptrend 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 uptrend. It is preferable to wait until the trend stabilizes and the price begins forming higher highs and higher lows before entering the market

Pattern Target:

It is difficult to define a precise target for the pattern, but resistance levels formed before the reversal can be used as potential targets

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