Reversal pattern · bearish bias
Rounding Top pattern
A rounding top is a gradual dome-shaped turn from rising prices to falling ones. Buying pressure fades slowly instead of collapsing at a single peak.
How to identify a rounding top
- A prior advance that slows down.
- A broad, curved top with no single sharp peak.
- A gradual decline back towards the start of the advance.
What confirms it
A close below the level where the advance began.
What invalidates it
A recovery back above the centre of the dome.
How traders project a target
Subtract the height of the dome from the breakdown level as a reference.
Common mistakes
- Calling the top before the right side of the dome has formed.
- Ignoring a strong underlying uptrend on the higher timeframe.
- Treating every slowdown in a trend as a rounding top.
Where it appears
Usually forms over long periods on higher timeframes.
Frequently asked questions
Is a rounding top bearish?
Yes. It suggests a gradual shift from buyers to sellers and confirms on a break below its base.
How is it different from a double top?
A double top has two distinct peaks. A rounding top has one broad, curved peak.
What invalidates a rounding top?
A recovery back above the middle of the dome shows buyers have regained control.
Related chart patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.