A Rounding Top forms an "n" shape on a chart, and a Rounded Bottom a "u" shape.
It can be difficult to separate a Rounded Bottom from a consolidation pattern (i.e. one where the price continues to decrease or stay level), but the clue, as always, is in volume.
In a true Rounded Bottom, the volume decreases as the price decreases, which signifies an easing of selling pressure. As the price movement becomes neutral and goes sideways you will see that there is very little trading activity and volumes are very low. Then, as prices start to increase, the volume increases.
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