💥The Saucer pattern is a bullish trend reversal pattern that is characterized by a gentle and rounded bottom formation on a chart. It is also known as the "rounded bottom" pattern. The pattern indicates a shift in market sentiment from bearish to bullish.
💥The saucer pattern consists of a downward trend followed by a period of consolidation, and then an upward trend. The consolidation period forms the rounded bottom of the saucer. During this time, trading volume is typically low as traders wait for a clear indication of market direction.
💥Once the saucer pattern is complete, the price typically experiences a strong bullish breakout. This breakout is often accompanied by high trading volume, which confirms the bullish trend reversal. The saucer pattern can be seen on any time frame, but it is more reliable on longer-term charts.
💥It is important to note that the saucer pattern is not always a perfect semicircle, and the length of the pattern can vary. Additionally, it is always recommended to use other technical indicators and analysis methods in conjunction with pattern recognition to make trading decisions.
💥Let's move on to the next saucer pattern. How can you recognize this pattern? Think of a coffee cup saucer (in fact, a saucer refers to a soup dish that is deeper than a normal dish, but not so deep that it becomes a bowl). So, what's the connection? There's no direct correlation, but this pattern resembles a coffee cup saucer.
💥Take a look at the picture above and imagine a coffee cup saucer placed upside down. The left side of the saucer represents an upward price movement, but at a decreasing rate. The bottom of the plate is flat, which means the price movement during this period will look like sideways. The right-hand side of the saucer shows a declining price curve, indicating a pattern to change the trend from an uptrend to a downtrend. Let me explain it more clearly.
💥You can see that the price has climbed up over time before entering a period of decreasing rate movement to the sideways, and during this period, the number of volumes traded has not confirmed the upward movement. The trading volume will gradually decrease, which is a bad signal. When the price enters a declining period, it appears that there have been many sell-offs, which can be seen from the increasing trading volume while the price is dropping.
💥Now, let's imagine the saucer placed face up to support a coffee cup. Its shape is curved, as seen in the picture above. On the left-hand side, the trading volume will adjust down, and the number of volumes traded will gradually decrease accordingly because traders begin to see that the price drop is relatively low. When they sell, they may have to buy at a higher price than before. As for the bottom of the plate, buying pressure starts to come in, and the price rebounds somewhat noticeably.
💥After that, there is a short-term weakening due to taking profits (take profit) because traders want to stock up again before chasing the price to move upwards. The price moves up with the confirmation of an increasing trading volume and eventually breaks free from the sideways to continue moving in an uptrend. Thus, the uptrend saucer is a pattern that occurs during a trend shift from a downtrend to an uptrend.