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Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

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Definition

This is the name that technicians give to the bottom formation of a share price where it drifts out slowly from a strong downward trend and then begins to tentatively move upwards into a new bullish trend. Consider the following example:
<figure class="container-fluid"><img class="img-responsive" style="display: block; margin: 0 auto; max-width: 100%;" src="/onlinecourse/img/glossary/Saucer-Bottom.png" alt="Saucer Bottom Formation" />
<figcaption style="text-align: center;">Saucer Bottom Formation</figcaption>
</figure>
Here you can see that this share had a sharp fall which then became a sideways movement and finally a new upward trend. The saucer was about a month long before the new upward trend began. Also called an Umbrella Bottom and a Frying Pan Bottom.

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