A price pattern on bar charts resembles a where the cup is in the shape of a "U" and the handle has a slight downward drift.
A is considered a continuation pattern and is used to identify buying opportunities.
Traders should place a stop buy order slightly above the upper of the handle.
It is worth considering the following when detecting patterns:
Length - Generally, cups with longer and more "U" shaped bottoms provide a stronger signal. Avoid cups with a sharp "V" bottoms.
Depth - Ideally, the cup should not be overly deep. Avoid handles that are overly deep also, as handles should form in the top half of the cup pattern.
- should decrease as prices decline and remain lower than average in the base of the bowl; it should then increase when the stock begins to make its move higher, back up to test the previous high.
A retest of previous resistance is not required to touch or come within several ticks of the old high; however, the further the top of the handle is away from the highs, the more significant the breakout needs to be.
The is high on all time frames except on a 5 year chart attached to this one you can notice the is around a 46 which is kinda neutral, it's approaching an area where there's been some moderate resistance, but the has risen to a 94 on the 5 year chart & it's stayed in the high 70s for the 2016, 2017 & 2018 bull run.
It's interesting that they've recently launched a CBD Hemp beverage in Japan.