The inverted cup and handle chart pattern is the reverse case of the cup and handle chart pattern. This pattern can be called a bearish continuation or a bearish reversal chart pattern.
What are the things a traders need to look out for when trading this pattern?
Just under half the time, price trends upward leading to the pattern, Look for a smooth, rounded looking turn (an inverted cup,but most times there are exceptions). The two cup rims should bottom near the same price. The cup handle should be at the down right side of the cup.
Handle must not rise above the cup top but often retrace 30% to 60% up the height of the cup.
MOST IMPORTANTLY: THE CONFIRMATION:
The pattern confirms as a valid one when price closes below the right cup lip. Levels to keep an eye on are as follows:
Breakdown level:1.09850
Support 1:1.09506
Support 2:1.08972
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice.
What are the things a traders need to look out for when trading this pattern?
Just under half the time, price trends upward leading to the pattern, Look for a smooth, rounded looking turn (an inverted cup,but most times there are exceptions). The two cup rims should bottom near the same price. The cup handle should be at the down right side of the cup.
Handle must not rise above the cup top but often retrace 30% to 60% up the height of the cup.
MOST IMPORTANTLY: THE CONFIRMATION:
The pattern confirms as a valid one when price closes below the right cup lip. Levels to keep an eye on are as follows:
Breakdown level:1.09850
Support 1:1.09506
Support 2:1.08972
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice.