https://bit.ly/2Id4Yo1 Hidden discount at PatternExplorer. Cup and Handle Pattern:
-It is a continuation pattern.
-Discovered in 1988 by William O’Neil. I recommend his book How to Make Money in Stocks.
-You need a previous trend in order to have a continuation pattern.
-When the pattern trickles down the “handle” the volume will be slowly declining.
-Once it breaks the “handle,” the volume needs to be very high.
-Remember that the “cup” of the pattern needs to be a “U” shape and not a “V” shape. A “V” shape is likely to be a Double Bottom or a Double Top.
-The “cup” is gradual, it is about a 1/3 retracement from the previous uptrend, and goes back down to re-calibrate itself.
-You want to enter or add to your position when it breaks the “handle.”
★ SUBSCRIBE TO MY YOUTUBE: ★
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!
STOCK TRADING COURSES:
STOCK TRADING BOOKS:
MY YOUTUBE CHANNELS:
Trading the Cup and Handle – Stock Chart Pattern