Identification: A rounding top is a chart pattern used in technical analysis identified by price movements that forms the shape of an upside-down “U”.
Occurrence: It is identified by daily price movements, in particular the tops, which when graphed, form a downward sloping curve. It occurs at the end of a previous upward trend.
Study: Technical analysis of price information suggests that a rounding top may form at the end of an extended upward trend and that this price pattern may indicate a reversal in the long-term price movement.