Rounding Tops and Bottoms

Rounding tops occur as expectations gradually shift from bullish to bearish.  The gradual, yet steady shift forms a rounded top.  Rounding bottoms occur as expectations gradually shift from bearish to bullish.

Volume during both rounding tops and rounding bottoms often mirrors the bowl-like shape of prices during a rounding bottom.  Volume, which was high during the previous trend, decreases as expectations shift and traders become indecisive.  Volume then increases as the new trend is established.