15m ATOM/USDT Potential Cup and Handle Pattern
On the 15-minute chart, ATOM/USDT has formed a nice Cup-shaped base with constantly rising OBV showing a clear accumulation. It is now possibly forming the Handle part of the pattern. I would expect it to test the green support area before breaking out of the Handle. If it doesn't do that, then this pattern is invalid.
Already happened:
1. Nice cup-shaped base.
2. Clear accumulation shown by rising OBV throughout base formation.
Expectation for valid trade:
3. Handle formation tests the green support zone. That also happens to coincide with the 0.382 fib retracement level which is healthy.
4. Bounce from support on HIGH VOLUME and/or break from Handle pattern on HIGH VOLUME.
Invalidation:
If price breaks below support zone.
Target:
Depth of the cup base suggests a target of ~31.12. I would, however, be conservative and respect the next area of resistance which is the ~30.66 level.
Stop loss:
1. If strong bounce from support zone, stop loss would be 1xATR below the swing low.
2. If breakout of handle, stop loss would be below handle formation.
Already happened:
1. Nice cup-shaped base.
2. Clear accumulation shown by rising OBV throughout base formation.
Expectation for valid trade:
3. Handle formation tests the green support zone. That also happens to coincide with the 0.382 fib retracement level which is healthy.
4. Bounce from support on HIGH VOLUME and/or break from Handle pattern on HIGH VOLUME.
Invalidation:
If price breaks below support zone.
Target:
Depth of the cup base suggests a target of ~31.12. I would, however, be conservative and respect the next area of resistance which is the ~30.66 level.
Stop loss:
1. If strong bounce from support zone, stop loss would be 1xATR below the swing low.
2. If breakout of handle, stop loss would be below handle formation.
Comment:
The green support holding strong. Waiting for a strong volume green (blue) candle.
Comment:
Got a high volume momentum candle that broke the pattern's high. This is what my entry looks like.