Cup & Handle forming. Part 2
The last time I posted, that a Cup & Handle pattern is forming as part of an Continuation Pattern, which occurs as part of the current uptrend.
As I suspected, my first draft of the Cup & Handle pattern was too narrow, but at least the price level was reached.
Hence, here is my next draft. It seems, that we are currently inside the handle.
I modified the thick resistance line and made it more even, so it conforms with the two highs.
The handle should form in the top half of the cup pattern, so we only should fall down to approx. 10.400 USD.
You usually set up a Stop loss (slightly) below the handle. I will use 10.250 for myself.
There is only one imperfection with this pattern so far:
usually the volume should rise from the bottom of the bowl to the handle. but in this case it slighly decreased.
this may be an indicator, that the handle might be lower than the top half of the cup or that the entire pattern does not play out as a whole.
it is up to you to calculate the probability of each scenario.
please think for yourself if you are going to trade this pattern or not.
As I suspected, my first draft of the Cup & Handle pattern was too narrow, but at least the price level was reached.
Hence, here is my next draft. It seems, that we are currently inside the handle.
I modified the thick resistance line and made it more even, so it conforms with the two highs.
The handle should form in the top half of the cup pattern, so we only should fall down to approx. 10.400 USD.
You usually set up a Stop loss (slightly) below the handle. I will use 10.250 for myself.
There is only one imperfection with this pattern so far:
usually the volume should rise from the bottom of the bowl to the handle. but in this case it slighly decreased.
this may be an indicator, that the handle might be lower than the top half of the cup or that the entire pattern does not play out as a whole.
it is up to you to calculate the probability of each scenario.
please think for yourself if you are going to trade this pattern or not.
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