Rounded Tops and Bottoms
These are the patterns you see after they are over. Not very helpful, right? Well, you can actually see them before they are over if you know what to watch. They represent a slow, gradual shift in the market, perhaps even a loss of interest.
In a rally, bulls just fade away without bears stepping in to take charge. In a decline, it is just the opposite as bears stop selling aggressively without bulls stepping in to take over. The frustrating part is that trendlines are broken without the euphoria or increased activity associated with a clear reversal of trend. Fan lines appear to fail as well. When analysis becomes unclear, it is always a good idea to fall back on the basic definitions of trend. At bottoms, look for the ...
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