How I Made Money On A CUP AND HANDLE Pattern (QLCBTC)Dear Friends :)
This is an educational post about the Cup and Handle pattern. I have noticed, that many people tend to misinterpret how it works. This is from an actual trade I made yesterday, which I made a bit of money on.
Normally we want the following for a Cup and Handle Pattern to be valid:
1. We want the cup to be an U-shape and not V-shape. Check!
2. We want the cup not to be too deep and the same with the handle. Check!
3. We want low volume on the handle. NOT check!
4. It is usually a continuation pattern, which means, that we normally want to be in a prior uptrend when it occurs. Check!
So as you can see, that we come from a prior uptrend, its a pretty nice U shape, not deep, the same with the handle, a steep downtrend on the handle. So everything except the big volume (brown circle) made this valid.
So even though everything doesn't match 100 percent you can still enter a trade, if let's say other indicators also shows positive signs.
Determine Targets
A profit target is determined by measuring the distance between the bottom of the cup and the pattern’s breakout level, and extending that distance upward from the breakout. In this case I used Elliott Wave theory to determine it though.
Please leave a LIKE for this educational post! Thank you so much, my friend :)
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