The proper way I trade this is as follows:
- Buy the breakout & candle close of the handles upper after it has formed, this is still forming as of this writing.
- Considering the bottom of the cup is an unreasonable stop loss, I am placing mine on the bottom of the handle's channel once it has broken out of it convincingly.
- Take profit should be around 10% above the breakout point in this trade. To find the TP point on a , you would measure the cup's bottom up to the top right cup end.
- Watch for a severe spike on the breakout of the handle to confirm timing. This can be done with any number of indicators including the O.B.V. and the C.M.F..
As a note, the kumo will act as a very good guide for the handle reversal.
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This is not financial advice, this is simply my personal analysis of the current conditions.
Please do your own research and use my content to educate yourself.