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Rounding Bottom reversal pattern in US 2-year Treasury Note Yield

This is a chart of US 2-year Treasury Note Yield.

US 2-year Treasury Note Yield chart from 1988 to 2018

US 2-year Treasury Note Yield chart from 1988 to 2018 | Source: Investing.com

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.

CharacteristicDiscussion
Weekly or dailyAppears on either the daily or the weekly chart. Rounded nature is more apparent in weekly chart.
ShapeA rounded bowl shape, usually over many months.
BlipPrice 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.
VolumeU-shaped volume pattern.
ConfirmationThe pattern confirms when price closes above the highest peak of the pattern.
ActionBuy when price closes above highest peak on heavy volume.
FailurePrice falls back below the highest peak.

This chart of US 2-year Treasury Note Yield with Rounding Bottom I pin here for future reference. Commonly spotted chart patterns are described here and here.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

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