Perfect example of Cup & Handle Pattern in Making - Learn
Hello Falcon Traders
Once again i have come up with an example of Cup and Handle Pattern in making.
This will help you to spot the pattern clearly once its forming up.
The points to note are as enumerated below
first- Time Frame - Always analyze the chart on the higher time frame. in this case i am using Weekly Time Frame.
Secondly -Price Rise - The rise in Price should be supported with the corresponding rise in Volumes also. which i have marked on the chart for your understanding.
Thirdly - Volumes - Always keep an eye on the volumes and how they are reacting to the rise in price. Rise in price and rise in Volumes shows a strong bullish trend. Then we see a drop in Volumes when the Cup is getting formed. This explains that the traders are holding on to the gains and the price drop without any increase in volumes is a weak bearish trend (Volumes Drop) so this leads to rise in Price with volumes thus leads to the critical formation of the cup.
In Stage 2 we have the Handle Getting formed before the breakout takes place. Similar rise and drop in volumes should be expected during the formation of the handle.
Once the pattern is complete - Cup and handle - we will witness a good amount of rise of Volumes with rise in price as the pattern will be identified by other traders also- thus leading to increase in the momentum of the price rise after breakout from the zone of resistance.
Target - we always put the target from apex of the cup to the base of the cup. the same has been marked for your learning.
Hope you have liked the idea and learnt something good today. Kindly share your love by comments
Love you all
Once again i have come up with an example of Cup and Handle Pattern in making.
This will help you to spot the pattern clearly once its forming up.
The points to note are as enumerated below
first- Time Frame - Always analyze the chart on the higher time frame. in this case i am using Weekly Time Frame.
Secondly -Price Rise - The rise in Price should be supported with the corresponding rise in Volumes also. which i have marked on the chart for your understanding.
Thirdly - Volumes - Always keep an eye on the volumes and how they are reacting to the rise in price. Rise in price and rise in Volumes shows a strong bullish trend. Then we see a drop in Volumes when the Cup is getting formed. This explains that the traders are holding on to the gains and the price drop without any increase in volumes is a weak bearish trend (Volumes Drop) so this leads to rise in Price with volumes thus leads to the critical formation of the cup.
In Stage 2 we have the Handle Getting formed before the breakout takes place. Similar rise and drop in volumes should be expected during the formation of the handle.
Once the pattern is complete - Cup and handle - we will witness a good amount of rise of Volumes with rise in price as the pattern will be identified by other traders also- thus leading to increase in the momentum of the price rise after breakout from the zone of resistance.
Target - we always put the target from apex of the cup to the base of the cup. the same has been marked for your learning.
Hope you have liked the idea and learnt something good today. Kindly share your love by comments
Love you all
Trade active
Trade closed: target reached:
my target in JWL REACHED - shared it at 380 levels now at 566 levels and hope you made some gains
Related Ideas
