The rounding bottom pattern is a technical setup for the patient trader.  This is because the pattern can take quite a bit of time to develop before any significant price moves begin. In this article, we will walk you through a step-by-step guide for how to trade the pattern and the key things to look for as you manage your position. What is a Rounding Bottom Formation? The rounding bottom is a reversal chart pattern, which develops after a price decline.As a stock is trending lower, the rate of the decline will begin to slow down.  This is followed by a range pattern, which ultimately shifts into a slow gradual increase.  This increase ultimately leads to a bullish move.The pattern will appear symmetrical in nature when comparing the bearish and bullish sides of the formation.Rounding BottomAs you see, the price gradually switches from bearish to bullish. Note that this chart pattern could be found on any time chart. The pattern is truly relative to the time frame you are trading.However, the one thing that each timeframe has in common is that the formation takes a lot of time to complete.There are other chart patterns which are first cousins to the rounding bottom, such as the saucer bottom and half-pipe bottom pattern.Volume Indicator on Rounding Bottom PatternVolume is a key indicator for identifying and validating the rounding bottom pattern.The pattern will start with higher volume as the stock experiences its final plunge lower. This high volume event is then followed up with lower volume as the stock consolidates in a range. Lastly, the volume will begin to pick up again as the stock begins its bullish move higher.Let’s now review the same chart, but now we will include the volume indicator:Rounding Bottoms and Volume IndicatorThe volume indicator is displayed at the bottom of the chart. As you can see in the formation, high volume in the beginning, flat in the middle and volume increase on the way out.A simple method to visually validate the pattern is to draw a line connecting the tops of the volume indicator for each price period.You will notice that volume will also mirror the same rounding pattern. Pretty cool uh?Profit Target for the Rounding Bottom FormationThe potential of the rounding bottom chart pattern is bullish. After the trend switches from bearish to bullish, the expectation is for price to continue expanding higher.But the question we all want answered is, how much higher? The simple answer is the move higher will be at least the size of the rounding bottom formation.Rounding Bottom – Neck LineTo measure the potential of your rounding bottom, you should first identify the neck line of the pattern. To do this you should draw a line across the top of the bearish trend and the bullish trend before the breakout occurs.Then take the distance between the neck line and the lowest point of the pattern. This distance is the size of the rounding bottom pattern.When the price action breaks the neck line, you should open a long position.The blue rectangles on the image illustrate the size and the target of the pattern. The green checkmark indicates the moment when the price action completes the minimum potential of the pattern.The good thing about the rounding bottom pattern is that while it takes a long time to develop, it has a very high success rate.It’s true that good things come to those who wait!Step by Step Guide for How to Trade the Rounding Bottom PatternNow that you are familiar with the rounding bottom pattern, let’s do a deep dive on how to trade the pattern. In our walkthrough we will use the daily charts, but the same concepts will apply to any timeframe.1) Confirming the Rounded Bottom FigureTo confirm the pattern, you need to find a price decrease, which slowly switches to a range followed by a price increase. The strongest confirmation comes when the volume indicator shows high volumes on the decline, flat volumes on the range and increasing volumes on the reversal.2) Rounded Bottom Neck LineAfter you identify the pattern, you need to draw the neck line. To do this, you need to draw a horizontal line across the top of the bearish and bullish sides of the rounding bottom pattern.3) Rounded Bottom BreakoutThe rounded bottom breakout happens when the price penetrates the neck line in a bullish direction. In simpler terms, the stock should show strength as it crosses through the neckline. This strength should display itself in the form of price expansion and increased volume.4) Round Bottom Trade EntryA trader should look to get long once the stock is able to break through the neckline.5) Round Bottom Stop LossIf you read the Tradingsim blog, you know I do not believe in trading without a stop loss.Although the rounding bottom pattern is relatively reliable there are no exceptions to the rule of protecting your capital. After all, nothing is 100% in the stock market.So, now that I have scared you to death, let’s talk about where to place your stop loss order. The answer to this question is in the midpoint of the pattern.A more conservative approach would be below the low of the breakout candle. This way if the stock fails, you can quickly exit the position and look for better trading opportunities.6) Rounding Bottom TargetThe minimum target for the pattern is equal to the size of the pattern when added to the breakout. Once the price hits your target, you should look to exit the position.Rounding Bottom Trading Example#BTC #Blast #BinanceTournament

#RichardTeng Cardano's lightweight wallet Lace has just received a quick upgrade. In a new tweet, Lace announces the release of version 1.7.1, which represents a quick update before the next full release.Exactly a week ago, on Nov. 15, Lace version 1.7 was released. The immediate release of a quick update after this release, according to the Lace team, arises from user feedback.The Lace team acknowledged receiving feedback about a couple of bugs from users, which it sought to fix straight away and thus necessitated the release of version 1.7.1. The new version 1.7.1 also brings about improved interaction with $ADA handles.The full release, Lace version 1.7, brought about remarkable improvements, expanding the portfolio pool limits.Users can now stake their #Ada in up to ten stake pools, up from an initial five. The update also brought on more multistaking beta improvements and bug fixes.Since its mainnet launch in April 2023, the Lace light wallet platform has iterated through different upgrades, consistently adding new features.Multidelegation, or multistaking, a feature that will enable Lace users to delegate their ADA to multiple stake pools without partitioning funds across multiple accounts, was introduced in the Lace v. 1.5 release.#cardano celebrates VoltaireOn Nov. 21, the #CardanoCommunity  celebrated the birthday of François-Marie Arouet, widely known as Voltaire, whose visionary beliefs inspired Cardano's fifth development era, called Voltaire.The Voltaire era represents the implementation of an on-chain governance structure, which represents the culmination of efforts that began with the introduction of CIP-1694. This critical phase promises to deliver the last ingredients required to develop the Cardano network into a self-sustaining, self-governing, open and decentralized ecosystem, which is now underway.In line with this drive, the Cardano Foundation stated it will actively engage in the upcoming Cardano Ballot event by voting yes with one wallet of 11,429,000 ADA.#Blast