M4 · Part 2 — Tops & Bottoms (reversals) · Lesson 51/144
5 min 40 XP
A rounding bottom (or saucer) is a reversal that happens gradually, with no sharp V or neckline. Price drifts down, flattens, and curves smoothly back up in a long U — selling pressure quietly giving way to buying. A rounding top (a dome) is the mirror: a slow arch that rolls from buying to selling.
The key level is the rim — the price where the curve began, which becomes resistance (bottom) or support (top). The pattern triggers when price breaks the rim. Enter the break or its retest, stop just beyond the rim, and target the depth of the bowl projected from the rim. Because they form slowly, saucers are easy to miss — but they often precede very large, durable moves.