In fact, the formation process of the 'Rounded Bottom' pattern is a process where, after a continuous decline in price, the bearish energy gradually weakens until it disappears, while the bullish energy continuously strengthens until it dominates. However, in this process, both the weakening of bearish energy and the strengthening of bullish energy occur slowly, which forms the 'Rounded Bottom' pattern.
Due to the proximity of the highs and lows during the bottoming process, the 'Rounded Bottom' pattern does not have the obvious high and low structures found in the previously discussed 'Head and Shoulders Bottom', 'Double Bottom', and 'Triple Bottom' patterns; its overall structure is relatively smooth and arc-shaped.
Because there are no obvious high and low structures in the overall structure, the 'Rounded Bottom' pattern generally does not have a distinct neckline. To determine whether the 'Rounded Bottom' pattern is a typical candlestick pattern before a market rally, one should observe if there is an increase in volume, expansion, or rapid rise after forming the 'Rounded Bottom' pattern.