Rounding Tops. Bullish or Bearish?Rounding top patterns are intrinsically bearish and usually signify bearish reversals when they form in an uptrend. The first rounding top in the chart is between 04 - 23 Nov 2020. However, instead of a bearish reversal, AAPL rallied to new highs in the following days. The second rounding top pattern occurred between 01 - 16 Feb 2021, and this time, it resulted in a bearish reversal as AAPL reversed on the daily chart. Observe the volume in both instances declines in the pattern, and subsequently increases after breakout.
Targets
Targets are discernible by using a 1:1 ratio based on the height of the rounding top pattern as shown in the chart above.
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