Below is a slider quiz to test your ability to identify rounding tops and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
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This is an example of a rounding top on the weekly charts. All of the charts in this quiz are on the weekly scale. Price forms a gentle rounded bump on the chart like that shown here in red. The breakout can be in any direction, but is upward 53% of the time. That's unusual given that price ends the pattern near or at the bottom of the turn.
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Find as many rounding tops as you can. For help, click here.
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I highlight four rounding turns. Every one of these breakout upward.
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Here's another rounding top. Where will price reverse? Line 1, 2, 3 or 4?
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The answer is line 4. Price broke out upward. You can see that none of the price spikes closed below the bottom of the pattern (horizontal red line). The green line at the top
of the chart marks the ultimate high.