Cup and Handle Golden CrossI posted targets for the largest cup but there are 2 other cups inside one could trade. The large cup would need to break the prior high of 97.28 to be valid. If you were to trade the smaller cups, one would find the high of that intra-year cup and the low (same for all 3 cups), calculate the depth, pick a long entry level and calculate targets. Now that I look again, there are actually 3 intra-year cups inside the large yearly cup.
The large cup is 50.47 deep (cup high minus cup low). Targets would be calculated using fib levels and added to the cup break out level which is a tad above the prior high to help clear the resistance of the prior high.
Some would use the .382, .618 and .786 fib levels for targets one, then 1.272 and 1.618 for targets 2.
Support at handle low (HL) and mid cup (MC) so possible stop under these levels. Pocket pivots (green triangles) are also points of support. You may see support elsewhere.
A golden cross and a death cross are exact opposites. A golden cross indicates a possible uptrend going forward, while a death cross signals a possible downtrend. Both refer to the solid confirmation of a long-term trend by the occurrence of a short-term moving average crossing over a major long-term moving average.
A golden cross consists of a shorter term moving average crossing up through a longer term moving average. Many use the 50 crossing up through the 200 SMA but the 50 crossing up through the 100 is also bullish. Taking a look at the slope of the moving averages can also be important. Moving averages are lagging indicators, so eyeballing price, which represents the present, is often key. For example if the 200 SMA is sloping up, which is considered to be a long term moving average and represents price over the past 200 days or 40 weeks, is sloping up, it can give you a clue that the security is possibly okay in the long term. Moving averages change just as any technical indicator will do.
On this chart the 20 is blue, the 50 is orange, the 100 is yellow and the 200 SMA is red. If you rely on moving averages to trade, the 20 is drooping which some may see some shorter term turbulence. I will feel more comfortable when price is above the 20 SMA as I own this. It is a good idea to use other indicators with moving averages. The Awesome Oscillator is based on a combination of moving averages so perhaps RSI or MACD. I like the Awesome Oscillator because it presents the moving averages in a different way that is easy for me to eyeball on TOS. I do not like using a lot of indicators but some folks do. We are all different, and sometimes one indicator may help more than another with a certain price pattern, so I switch my focus to a different indicator. For example, I rely on bollinger bands when price looks like it going out the roof or through the floor (o:
No recommendation.
