This is an educational post about the Cup and Handle pattern. I have noticed, that many people tend to misinterpret how it works. This is from an actual trade I made yesterday, which I made a bit of money on.
Normally we want the following for a Cup and Handle Pattern to be valid:
1. We want the cup to be an U-shape and not V-shape. Check! 2. We want the cup not to be too deep and the same with the handle. Check! 3. We want low volume on the handle. NOT check! 4. It is usually a continuation pattern, which means, that we normally want to be in a prior uptrend when it occurs. Check!
So as you can see, that we come from a prior uptrend, its a pretty nice U shape, not deep, the same with the handle, a steep downtrend on the handle. So everything except the big volume (brown circle) made this valid.
So even though everything doesn't match 100 percent you can still enter a trade, if let's say other indicators also shows positive signs.
Determine Targets
A profit target is determined by measuring the distance between the bottom of the cup and the pattern’s breakout level, and extending that distance upward from the breakout. In this case I used Elliott Wave theory to determine it though.
Please leave a LIKE for this educational post! Thank you so much, my friend :)
D4 Loves You <3
Yorum
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YOU can MAKE money on this trade too, my friends. Take a look at this BIGGER Cup and Handle. Look for confirmation :)
Remember to leave a LIKE, guys :)
Yorum
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Also our QLC are doing great! It seems finally to break out from that big Cup And Handle - please leave a LIKE, my friends :)
"Hi, my name is Dark Energy and I've been on a major losing streak but let me show you a cup and handle formation that actually worked. Oh, and I did this trade because I am the best and I'm never wrong. I simply didn't post this opportunity when I first saw it because... I'm the BEST and I CALLED IT! Gimme likes lolz!!!"
rob2093124
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TRXBTC cup and handle from the looks of it 1H
AsBobbyDigital
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A made 120% on EOS Cup with Handle
swartz88
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ICX is currently doing this exact same thing. I see it on the break out to top out at .00079 BTC. Is anyone else seeing this?
Rainman2
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@swartz88, BTC is about to BLOW UP. It happening everywhere.
UnknownUnicorn2012266
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so the one trade which was actually a good trade opportunity, you sharing it after executing :D---not fair ..lol
darkandblue
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@ntabish12, there is no p8nt of this TA indeed
Unitrode
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ETHUSD 2H just made a cup... waitin for the handle
uma729
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What do think today’s target will be?
Rainman2
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You're about to see cup and handle #2. The formation is sloping downwards and the handle is about to form the right side wall. You're welcome!