Cup and handle pattern gender articles

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1. A to B: Cup and handle pattern starts forming when the market starts going down strongly. The down movement forms the left side of the cup.

2. B to C: After a while of having a strong bearish market, bears becomes exhausted and so the down movement becomes slower, and we will have a sideways market for a short period of time. This sideways movement forms the bottom of the cup.

3. C to D: Then the bulls take the control and the market starts going up strongly, like when it started going down strongly at the beginning of the formation of the cup decimal word problems 6th grade. This strong up movement forms the right side of the cup.

4. D to E: After a while of going up, the bulls become exhausted too, and so the market stops going up strongly and forms a small sideways section which is the cup’s handle. This part is very important because it is where we can predict the next direction of the market.


I will tell you how.

This is a good question. We learn the chart patterns to become able to use them for locating the trade setups, otherwise there is no point to learn to recognize the chart patterns. 1. Going Long at the Bottom of Cup and Handle Pattern:

When the markets starts going down strongly and then becomes slow and forms a sideways market that has a tendency to go up, experienced traders understand that the market is at the middle of forming a Cup and Handle pattern.

When the market is going down strongly to form the left side of the pattern, you cannot do anything unless you are already short because you had the chance to take a short position after a support breakout. However, you have to wait if you are not already short usd to jpy exchange rate. If the market becomes sideways and shows a tendency to go up by forming bigger and bigger bullish candles, then you know that the market is at the middle of forming a Cup and Handle pattern python dictionary. At this stage, the left side of the cup and also most part of its bottom part is already formed, and you know that soon you will see a strong up movement which will form the right side of the cup. Therefore, you can wait for a resistance breakout to go long.

I am using the above example (screenshot) to show you how and where you could go long when the market was completing the formation of the bottom of the cup:

There is a well-known rule about the handle which says, if the price breaks above the handle resistance, it will keep on going up strongly. This up movement can be at least the same as the size of the cup depth.

If you succeed to go long at the bottom of the cup, then you should close your position and collect your profit when you see that the market becomes slow again and bigger bearish candlesticks start appearing. This is the beginning of the formation of the handle (D to E).

You wait for the handle to develop. It will have a resistance and probably a support. Sometimes the handle forms inside a triangle which makes it much easier to wait for the trade setup.

In the above example, the price didn’t break above the handle resistance eur to usd exchange rate. Instead, it broke below a support line that formed after the handle formation and went down strongly. Therefore, we could go short. If it had broken above the handle resistance, then we could have gone long:

Now I show you an example where the price breaks above the handle resistance and goes up strongly. This is something that is more expected when a Cup and Handle forms on the chart. In most cases bulls will take the control after the formation of the handle and the price will go up after the handle resistance breakout.

The blow screenshot shows another cup and handle pattern that formed on EUR/USD daily chart after the above Cup and Handle that I already showed you. The above pattern broke below the support and went down. However, the below pattern broke above the handle resistance and went up code binary. Another thing about the below example is that the handle formed inside a symmetrical triangle that made it easier to wait for the breakout, because we already knew that in an uptrend it was more probable that the market breaks above the resistance of the formed symmetrical triangle (which in this case is the handle resistance also) and continues the uptrend:

To answer this question, you have to plot a horizontal line above the handle highest level. The distance of this line from the bottom of the cup is the size of the up movement that will occur after the handle resistance breakout.

Please look at the below screenshot. I have plotted a horizontal line above the handle highest high (the dashed red line). Then another horizontal line below the lowest low of the cup. The distance of these two lines is 914 pips. If we had taken a long position after the handle resistance breakout, we expected that the market would go up for 914 pips. To prove if it would or not, I plotted another horizontal line 914 pips above the horizontal line I plotted above the handle’s highest high. As you see on the below screenshot, the market did went up exactly for 914 pips and then reversed and went down. It is amazing, isn’t it?

There are some other ways to determine the breakout movement, like using the Fibonacci levels. But I do not want to make this article too complicated by using Fibonacci euro to usd exchange rate. We will talk about Fibonacci in some other articles. Inverted Cup and Handle Pattern:

Inverted Cup and Handle is as common as the regular one. It looks exactly the same, but it is only inverted. In Inverted Cup and Handle, we wait for support breakout to go short.

This screenshot shows the same Inverted Cup and Handle pattern, but with a smaller magnification ntd to usd. As you see, with this one also the market went down after the support breakout very strongly:

As you see, Cup and Handle pattern is such a strong pattern. Although it doesn’t form on the charts very frequently, it works strongly and its breakouts are reliable and profitable.

Keep in your mind that you should not let your mind form a pattern when there is no pattern on the chart. Do not see the patterns that don’t exist on the charts. Wait for the patterns to form completely and then decide about taking positions. Forming a Strong Cup and Handle Pattern on USD/CHF Monthly Chart

USD/CHF has already formed half of a Cup and Handle pattern on the monthly chart so far binary to ascii. It means the A-B and B-C parts are already formed. Still we don’t know whether it will form the second half to complete the Cup or not. However, if it breaks above the 1.03269 resistance level on the monthly chart, then most probably it will go up to form the second half:

Chris I have been reading everything on your site for the last two weeks. I am new to and think the methods used buy you guys along with the longer time frames, make more sense than anything else I have read. I started trading a demo account this week. I am trying to learn how to read charts and think I see a cup and handle forming on two monthly charts can you check and tell me if I am right.

1. EUR/AUD – Top of cup 1.5935 bottom of cup 1.1600 and flat of cup is 1.1362. (handle is not fully formed but almost) first candle is 1/31/10

2. GBP/AUD – this on is an angle so I will just give you dates for the top and bottom and handles usd to cad exchange rate history. The start of the cup is 09/30/09 cup finishes on 1/31/14 and the handle is completing on the current monthly candle.

Here it is. If you see the pattern in the white box on the Stochastic. I did notice that the other times I saw it the blue stochastic has to go abruptly down then straight back up and the red has to flatten out. But this time it did it for 118 pips and last time if I can find it I will send it. It did it for around the same. Same exact shape formed on the Stochastic. Other times I have seen the little dip and the fast line not go directly down it doesn’t seem to do it the boxer. But when it makes its v-shaped dip and then crosses over the slow it goes up for around a hundred pips. It’s probably just my imagination as I have only seen it a couple of times so I can calculate a percentage with it. I was just wondering if you thought it possible.


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