A Saucer Bottom is a semi circular rounding bottom that looks like a bowl on a price chart. The volume dries up during the formation of the saucer and increases as prices approach the resistance. Saucers occur somewhat infrequently but when they do they are among the most reliable patterns to trade.
Profit Target - can be measured by adding the depth of the saucer to the previous price high that forms the resistance of the formation.
Example - This weekly chart of TRAD shows a typical saucer bottom having formed over many months.
Trading Tip - Look for a significant volume increase as the prices approach the resistance. When accompanied by rising on-balance volume, this will usually precede a good breakout.