Day 6 training session

In technical analysis, transitions between rising and falling trends are often signaled by price patterns. By definition, a price pattern is a recognizable configuration of price movement that is identified using a series of trendlines and/or curves.A rounded bottom or saucer bottom can be a continuation or a reversal pattern. It is a cup or bowl formation where there is selling at the left of the pattern, but as time progresses the selling tapers off and the price starts to rise again. The pattern shows the transition from sellers having control to buyers having control.The rounding bottom chart pattern is also known as a saucer bottom given the visual resemblance and bowl-like appearance. The recovery period, much like the downturn, may take months or years to coalesce; thus, investors should be aware of the potentially lengthy patience necessary to realize a full recovery in stock price.The trading volume in a rounding bottom chart pattern ideally follows (and confirms) the direction of the stock price, but it is unnecessary to have perfect volume price correlation.