Rounding top

The rounding top pattern is a bearish reversal pattern which is formed by price movements that resemble an inverted saucer when a trend line is traced over the price highs. A rounding top most commonly forms at the end of a sustained uptrend, and this indicates a reversal of this uptrend. It is considered a rare chart pattern because it takes a very long time to form.

Rounding Top Pattern

The best time to enter short on a rounding top is when the candlestick price action has broken through an imaginary line drawn to connect both ends of the rounding top.