Rounding top patterns are intrinsically bearish and usually signify bearish reversals when they form in an uptrend. The first rounding top in the chart is between 04 - 23 Nov 2020. However, instead of a bearish reversal, AAPL rallied to new highs in the following days. The second rounding top pattern occurred between 01 - 16 Feb 2021, and this time, it resulted in a bearish reversal as AAPL reversed on the daily chart. Observe the volume in both instances declines in the pattern, and subsequently increases after breakout.
Targets
Targets are discernible by using a 1:1 ratio based on the height of the rounding top pattern as shown in the chart above.
Happy Trading!
Targets
Targets are discernible by using a 1:1 ratio based on the height of the rounding top pattern as shown in the chart above.
Happy Trading!
