Greetings, Traders!
Today, I present an illustrative example of the Cup and Handle Pattern Breakout in Bajel Products Limited, focusing on key considerations for a comprehensive analysis.
Stage - 1
Firstly, Time Frame:
Always conduct your chart analysis on a higher time frame. In this instance, we are utilizing the Daily Time Frame for a more strategic perspective.
Secondly, Price Rise:
A surge in price must be accompanied by a proportional increase in volumes. This correlation is crucial, and I have highlighted these instances on the chart for clarity. The breakout candle shows a good strength with rise in price.
Thirdly, Volumes:
Carefully monitor how volumes respond to the rising price. A simultaneous uptrend in both price and volumes signals a robust bullish trend. The subsequent drop in volumes or contraction during the Cup formation suggests traders are holding onto their gains. Conversely, a decline in price without a corresponding volume increase indicates a weak bearish trend. Thus, meeting a criteria of breakout.
Stage 2 -
Handle Formation: During the creation of the Handle, anticipate a similar pattern of rise and drop in volumes. This stage is pivotal in preparing for the eventual breakout.
Stage - 3
Pattern Completion:
Once the Cup and Handle pattern is finalized, expect a substantial increase in volumes and price. Recognition by other traders amplifies momentum, particularly after a breakout from the resistance zone.
Stage - 4
Target:
For setting targets, a common approach is measuring from the apex of the cup to the base. I have marked this on the chart for a practical understanding.
I hope this breakdown enhances your understanding of the Cup and Handle pattern. Feel free to share your thoughts and comments; your feedback is greatly appreciated!
Happy Trading!
Today, I present an illustrative example of the Cup and Handle Pattern Breakout in Bajel Products Limited, focusing on key considerations for a comprehensive analysis.
Stage - 1
Firstly, Time Frame:
Always conduct your chart analysis on a higher time frame. In this instance, we are utilizing the Daily Time Frame for a more strategic perspective.
Secondly, Price Rise:
A surge in price must be accompanied by a proportional increase in volumes. This correlation is crucial, and I have highlighted these instances on the chart for clarity. The breakout candle shows a good strength with rise in price.
Thirdly, Volumes:
Carefully monitor how volumes respond to the rising price. A simultaneous uptrend in both price and volumes signals a robust bullish trend. The subsequent drop in volumes or contraction during the Cup formation suggests traders are holding onto their gains. Conversely, a decline in price without a corresponding volume increase indicates a weak bearish trend. Thus, meeting a criteria of breakout.
Stage 2 -
Handle Formation: During the creation of the Handle, anticipate a similar pattern of rise and drop in volumes. This stage is pivotal in preparing for the eventual breakout.
Stage - 3
Pattern Completion:
Once the Cup and Handle pattern is finalized, expect a substantial increase in volumes and price. Recognition by other traders amplifies momentum, particularly after a breakout from the resistance zone.
Stage - 4
Target:
For setting targets, a common approach is measuring from the apex of the cup to the base. I have marked this on the chart for a practical understanding.
I hope this breakdown enhances your understanding of the Cup and Handle pattern. Feel free to share your thoughts and comments; your feedback is greatly appreciated!
Happy Trading!
Trade active:
shared it at levels of breakout - now hit levels of two upper circuits after breakout
trading is active
trading is active
Trade active:
expecting a gap up tomorrow now and we will wait for our first target if 296 / then 330 levels on the daily time frame
Related Ideas
