As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
|
 46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 |
As of 11/20/2024
Indus: 43,408 +139.53 +0.3%
Trans: 17,002 -26.31 -0.2%
Utils: 1,055 +1.25 +0.1%
Nasdaq: 18,966 -21.33 -0.1%
S&P 500: 5,917 +0.13 +0.0%
|
YTD
+15.2%
+6.9%
+19.7%
+26.3%
+24.1%
| |
|
46,000 or 43,000 by 12/01/202418,000 or 16,600 by 12/01/20241,075 or 1,000 by 12/01/202420,000 or 18,400 by 12/01/20246,100 or 5,800 by 12/01/2024 | ||
Statistics updated on 8/26/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns Second Edition
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Rounding Top Chart Pattern
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The above numbers are based on more than 950 of perfect trades. See the glossary for definitions.
| Characteristic | Discussion |
| Weekly or daily | Rounding tops are large enough to appear on the weekly or daily chart. |
| Price trend | Upward leading to the chart pattern. |
| Even ends | The rims of the inverted bowl bottom near the same price, but 58% of the time the end is slightly higher than the start. |
| Rounded turn | Prices form a gentle curve, a half moon shape. |
| Breakout | A close above the highest high signals an upward breakout. Downward breakouts are a close below the lower of the two rims (the lowest low in the pattern). |
| Trading Tactic | Explanation | 
The Measure Rule
Retrace
|
| Measure rule | Compute the height from the highest peak in the pattern (point A in the Measure Rule figure to the right) to the right rim low (B) and then multiply it by the above 'percentage meeting price target.' Add it to the price of the highest peak (A, upward breakouts) or subtract it from the right rim low (B, downward breakouts) to get a target price (C). | |
| 32% retrace | For aggressive traders, if price retraces 32% of the rounding top's height, buy. The Retrace figure to the right shows an example. Measure the height from A to B and then take 32% of this. Add it to the low at B to get a target of C. C represents the buy price. | |
| Support | The two rims are support areas. | |
| Height | Tall patterns perform better than short ones. | |
| Breakout volume | Heavy breakout volume suggests better performance. | |
| Right rim | When the right rim is above the left, the pattern under performs. The Retrace figure to the upper right shows an example, with the right bottom (B) above the left (D). | |
| Yearly low | Performs slightly better when the breakout is within a third of the yearly low but samples are few (6 only). | |
| Throwbacks and pullbacks | Throwbacks and pullbacks hurt post breakout performance. |
The above figure shows an example of a rounding top chart pattern. Price bottoms at the start, A, climbs to the top at B, and then rounds down to C. In this example, when price rises above the 32% retrace buy point, it signals a purchase. That signal worked well here.
-- Thomas Bulkowski
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