Rounding Bottom
A long, saucer-shaped decline and recovery back up to the starting level; completes on a close above the lip.
Edwards & Magee's rounding bottom (saucer) is a slow, gradual change of direction with no sharp low.
Rare. Only the lip break makes it actionable; the curve alone is not a pattern.
How we define it
- Lip: a swing high that no close exceeds before the breakout
- At least 1.5 times the normal minimum length (90 candles on 4H, 60 on 1D, 20 on 1W)
- At least 5 ATR and 10% deep; the low in the middle 30-70%; closes fit a bowl-shaped curve (R² ≥ 0.75); no single candle larger than 20% of the depth
- Price is back within 15% of the depth below the lip
- Breakout (up) / breakdown (down): the first candle close beyond the boundary by at least 3% on 1D and 1W (1.5% on 4H)
- Failed breaks: a breakout or breakdown that closes back inside the boundary within 6 candles on 4H, 5 on 1D or 3 on 1W is removed from the list
- Trend filter: breakouts only above the 200-period EMA (40-week EMA on 1W), breakdowns only below it
- Watchlist: the pattern is complete but unbroken and price is within 3% (or 1 ATR, at most 6%) of the boundary
No recent breakout or breakdown
No rounding bottom has completed recently. See all patterns.
Nothing on the watchlist
No mature rounding bottom is close to its breakout or breakdown level right now.