TA 101: Ultimate Guide to The Cup and Handle Pattern

KUCOIN:ONEUSDT   Harmony / Tether
Cup and Handle (for less volatile assets):
  • 30% bull run before reaching the first high.
  • 10-30% drop to the bottom of the cup.
  • 10-15% drop to the bottom of the handle.
  • Length of the cup should cover more than 50-100 bars.
  • Bottom of the cup should not be a V shape. (deal breaker!)
  • More than 50% deep cup is a sign of weakness for the pattern.
  • Handle cannot go lower than the bottom of the cup.
  • The bottom of the handle should be at least 15-30% higher than the cup.

Volume profile:
  • Volume should go up when price test the resistance the second time.
  • Volume should go higher the third time price hits the resistance line.
  • Volume should be lower while forming the cup.
  • Red volume should not be too high or increasing.
  • Volume profile is a deal breaker!
For more volatile assets could have exaggerated numbers.

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