Rounding Bottom reversal pattern in US 2-year Treasury Note Yield
This is a chart of US 2-year Treasury Note Yield.
It is a monthly chart going back to 1988. A Rounding Bottom can be clearly defined from 2009 to mid 2017. A Rounding Bottom is a bullish reversal pattern. The longer its duration, the more significant it is. It is not as commonly spotted as other patterns such as Double Bottom and Triple Bottom.
Rounding Bottoms are commonly described like this.
|Weekly or daily||Appears on either the daily or the weekly chart. Rounded nature is more apparent in weekly chart.|
|Shape||A rounded bowl shape, usually over many months.|
|Blip||Price may shoot up midway through the turn, near the bottom, but price usually retraces most (not all) of the way back to where it started.|
|Volume||U-shaped volume pattern.|
|Confirmation||The pattern confirms when price closes above the highest peak of the pattern.|
|Action||Buy when price closes above highest peak on heavy volume.|
|Failure||Price falls back below the highest peak.|
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