Round top shape and round bottom shape (pan bottom shape)
In the shape of a round top (as shown in Figure 6.53), the market gradually forms an upwardly convex arc-shaped pattern. In this process, some smaller entities usually appear. Finally, when the market gaps downward, it proves that the round top pattern has been completed. This shape is the same as the western round top shape. In the round top shape, a downward window should be included as a verification signal at the top of the market.
The bottom shape of the pan (that is, the round bottom shape, as shown in Figure 6.54) reflects that the market is in the process of bottom reversal, and the market gradually shows a circular arc pattern that is recessed downwards, and then the market opens an upward window. The appearance of this form is consistent with the western round bottom form, however, in the Japanese pan bottom form, an upward window must appear to confirm the completion of the market bottom.