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jasonlau924
Oct 6, 2017 2:17 PM

Cup and handle formation? Long

Ethereum / U.S. dollarBitstamp

Description

Potential cup and handle formation. Upside break out of handle's channel. Validation of entry if closed above resistance between 300-310.

Entry point can be the next higher low retracement or at break out. Timing also seem to align to Metropolis.

Patience is key - I would wait for validation and trade with momentum.

Thoughts?
Comments
Maximilian108
The things w cup and handle is that there needs to be high volume on the "walls of the cup" and low volume in the middle. The reason a cup and handle works is that there are lots of people who bought high on the left price peak and are stuck. They wait until price and volume return and sell which creates a dip in price forming the handle. After they exit the price continues its uptrend. For the pattern to be true the handle can't be too sharp down, or too horizontal, it should also be shaped like the cup.

Price here actually broke out of a symmetrical pennant but lacks volume. We will see where it goes.
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