Technical analysis rounding top Recognizing:

Technical analysis of price information suggests that a rounding top may form at the end of an extended upward trend and that this price pattern may indicate a reversal in the long-term price movement.

The main point of recognizing the pattern is to anticipate a significant change in trend from upward trending prices to downward trending prices.

Recognizing this kind of a change can allow traders to take profits and protect themselves from buying into an unfavorable market, or strategist to make money from falling prices by short-selling.