Differences

This shows you the differences between two versions of the page.

--- chart_analysis:chart_patterns:cup_with_handle_continuation [2023/06/07 13:17]
jayanthi
+++ chart_analysis:chart_patterns:cup_with_handle_continuation [2023/06/07 14:22]
jayanthi [How can you find stocks that have formed a Cup With Handle pattern?]
@@ Line 29: / Line 29: @@
   * **Volume.** In early Sept-00, the stock broke handle resistance with a gap up and volume expansion (green arrow). In addition, [[:glossary_c#chaikin_money_flow_cmf|Chaikin Money Flow]] soared above +20%.\\ \\
   * **Target.** The projected advance after breakout was estimated at 9 points from the breakout around 32. EMC easily fulfilled this target over the next few months.\\ \\
+===== Cup With Handle FAQs =====
+==== Is a Cup With Handle pattern bullish? ====
+A Cup With Handle pattern is a bullish continuation pattern that marks a consolidation period followed by a breakout.
+==== What does a Cup With Handle pattern indicate? ====
+A Cup With Handle pattern has two parts—a cup and a handle. The cup forms after an advance in price. This prior trend is important as is the duration of the trend. The trend should only be a couple of months old. After completing the cup pattern, a trading range develops on the right side and the handle is formed. When price breaks out of the handle's trading range, it signals a continuation of the prior trend.
+==== How can you trade stocks that have formed a Cup With Handle pattern? ====
+Once you spot a chart with a Cup With Handle pattern, it's best to wait for price to break out of the handle before entering a long position. But before you do, make sure that trading volume is strong. This confirms that price will follow through to the upside.

Cup with Handle

Differences