Traders may be able to use this pattern, which is a bullish continuation, to predict a period of low investor confidence before the broader trend moves up again. It has a cup-like appearance, a rounded bottom chart pattern, and a wedge-shaped grip. Retracements in asset prices can be predicted after the rounding bottom (also called the handle), which occurs between two parallel lines on the price graph. Assets continue to increase, but at a slower pace than before.