The formations of "Cup & handles" as well as "Head & shoulders" are just visual ways to describe what the market is doing to be efficient.
The market's efficiency of course runs on the basic concept of supply & demand - but in order for that to happen efficiently, we need to constantly fight it out on multiple time frames to remove a certain side and then replenish at lower and higher levels.
In DPZ's case, we are looking to shake off buyers (built up at the $400 support level) in order to re-introduce newer and larger buyers at lower levels - subsequently replenishing buyers while also 'trapping' sellers.
This constant game of cat and mouse happens throughout all time frames - and is a big reason why most traders feel like they are constantly losing and that the market is against them - because it is!
Enough of the lesson - my thesis here is the market is intentionally building a large support base in order to break through, lose buyers (stopped out), trap sellers, and give the opportunity to big money to enter positions at attractive prices.
Target Entry: $380
Target Exit (Short term): $450
Target Exit (Long Term): $530
Happy Trading :)
The market's efficiency of course runs on the basic concept of supply & demand - but in order for that to happen efficiently, we need to constantly fight it out on multiple time frames to remove a certain side and then replenish at lower and higher levels.
In DPZ's case, we are looking to shake off buyers (built up at the $400 support level) in order to re-introduce newer and larger buyers at lower levels - subsequently replenishing buyers while also 'trapping' sellers.
This constant game of cat and mouse happens throughout all time frames - and is a big reason why most traders feel like they are constantly losing and that the market is against them - because it is!
Enough of the lesson - my thesis here is the market is intentionally building a large support base in order to break through, lose buyers (stopped out), trap sellers, and give the opportunity to big money to enter positions at attractive prices.
Target Entry: $380
Target Exit (Short term): $450
Target Exit (Long Term): $530
Happy Trading :)
Trade active
Took a bit longer than expected - But we finally hit our target entry yesterday - and nailed it to the dollar. Up and away we go!
Note
Unfortunate and ill-timed analyst downgrades - but we are technical traders and are being given another entry opportunity here at the HTF taper. Looking for a hold of teal/white. A drop below the 375 level will invalidate which is why an entry here has excellent risk/reward. Definitely recommend waiting to see a hold/reaction and looking for a more confirmed entry in the coming days if it plays out the way we want. No rush here. 
Trade the Story
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Trade the Story
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.