I like looking for rounding bottoms and a flag on the breakout for the reversal of downward trend. Or more accurately put, a breakout which is a very short period of consolidation relative to the length of the rounding bottom, with the breakout point defined as a heavy spike down on the downtrend coming into the rounding bottom. Then a V shaped reversal, and then final capitulation resulting in a push lower than the downward spike and a long time to round out. Then the breakout flag happens either above or below the resistance line that forms at the point of the down spike. Example below. AAR is one of these I’m trading at the moment.
