Price has taken support of the 20 day EMA and is moving up to form the handle of the cup looks a good buy at cmp for initial target of 839 with SL of 770 and a breakout from the cup and handle formation.
Dear vaibhabmehta , please check the pattern formed o the chart very carefully . I doubt this a " cup with handle " .
if it were then :
where is the handle , which is supposed to form on the right rim of the cup , either forming a descending channel or a horizontal channel . which is not present in the chart .
there is no recognisable "cup(s) within cup - formed .
i would like to notice the pattern BUMP formed within the rounded bottom between 02-11-2020 & 11-11-2020 . if you understand this small hint , you will know which pattern is this .
as you disclaimed " VIEWS FOR LEARNING PURPOSE ONLY , hence , i commented . i hope you understand . regards.
vaibhavmehta611
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@ramitbanerjee8 dear sir request you to read the title of my chart correctly I have clearly mentioned it as cup & handle in formation which suggests that handle is in formation right now and not yet formed, I clearly meant from looking at it it feels it is a cup & handle forming, also sir if you have found some pattern in the time period mentioned by you it would be better if you directly let me and the viewers know rather than hinting since it would make our learning process quicker :)
ramitbanerjee8
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@vaibhavmehta611, sir , this is a ROUNDING BOTTOM pattern . which forms after an uptrend . look at your chart ,price reversed since 23-032020 . then formed the bowl , it happens as market wants to test the strength ( fundamental strength , which reflects on the technical chart ) of the scrip . the bottom ( day low)) on 23-03-2020 was 436.15 , the candlestick formed on the day was a HIGH WAVE , a clear reversal pattern . the price went upto 830.00 on 27-07-2020 . clearly indicating a V-BOTTOM PATTERN in between 23-03-2020 & 27-07-2020 . now , as a natural aftermath of this IMPULSIVE V-BOTTOM , a retracement took place which i would like to label this as an extension , but , the obvious DESCENDING TRIANGLE which forms the extension , is not there , instead formed valleys and tops till 18-08-2020 and reversed to form DOUBLE TOPS - EVE ( from 25-08-2020 to 31-08-2020 ) & ADAM ( from 15-09-2020 to 17-09-2020) and as an obvious result , price declined to 682.00 on 19-10-2020 .And in this process , THIS decline had been forming ROUNDING BOTTOM , starting from 29-09-2020 , confirming the same on 05-10-2020 . the final confirmation came when the BUMP ( BUMP IS AN OBVIOUS INDICATION OF A " ROUNDING BOTTOM PATTERN ) FORMED BETWEEN 02-11-2020 & 11-11-2020 .
so , in your posted chart there are 3 patterns
1. V BOTTOM
2. DOUBLE TOPS - EVE & ADAM
3. ROUNDING BOTTOM .
BUT , THERE'S NO " CUP WITH HANDLE " .
A CUP WITH HANDLE FORMS
1. AFTER A PHENOMENAL DOWNTREND .
AND
2. AFTER THE DOWNTREND IS REVERSED .
3. IT FORMS ABOVE OR AROUND THE MEDIAN OF THE REVERSAL RALLY ,( MEDIAN = (BEGINNING PRICE OF THE REVERSAL TILL THE EXHAUSTION PRICE ) / 2 ).
5 . AS PER INDIAN MARKET'S MONEY FLOW STRENGTH , THE BOTTOM OF THE CUP SHOULD CONSIST OF ATLEAST 180 DAILY BARS - MY OBSERVATION .
6. THE HANDLE , A DESCENDING CHANNEL OR DESCENDING TRIANGLE ( I HAVE SEEN A " TIGHT PENNANT " AS A HANDLE IN 2-3 CASES , I MUST SAY ) SHOULD CONTAIN 5-7 BARS ON A DAILY CHART AND SHOULD NOT BREACH THE MEADIAN OF THE TOTAL RANGE BETWEEN THE RIGHT LIP / RIM OF THE CUP AND THE BOTTOM OF THE CUP . ( OFCOURSE , YOU WILL HAVE TO MEASURE IT BY DRAWING A HORIZONTAL LINE ALONG THE BOTTOM , AS THE BOTTOM IS ROUNDED :) )
THERE ARE FEW OTHER POINTS , BUT , TRUST ME , I WANT YOU TO FIND OUT . IT WILL GIVE YOU , " JOY OF LEARNING " .
I HOPE THIS SMALL WRITE UP WILL IGNITE YOU TO LEARN AND ANALYSE BETTER .
REGARDS.
vaibhavmehta611
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@ramitbanerjee8, Dear sir, thank you for the excellent analysis provided and your observations, your efforts really mean a lot and would help me learn and grow just to clarify though if you would have taken just a little effort to see my ideas you would have seen rounding bottom pattern was already posted by me this would have saved you a lot of time and effort, here's the link for your perusal:
Also sir it would be good to take a note of few points :
- Rounding bottom acts as a reversal pattern in a downtrend and as a consolidation pattern in an uptrend.
- Cup and Handle pattern is nothing but an extension of the rounding bottom pattern wherein price tries to test the strength once again but demand overcomes the supply
before the price reaches 50% of the previous cup/rounding bottom.
- So even the cup and handle (handle being extension of the rounding bottom) acts as a consolidation pattern in an uptrend.
- Also sir using such fancy(complex) names in your analysis does not change the fact that price once it breaks out from the neckline/resistance above 839 will give a good move,
So keep an eye on this level if it breaks to give you a good trade and good profit, cheers :)
Appreciate the efforts taken :)
Also if you find my ideas relevant/not relevant do comment and like will help me grow :)
vaibhavmehta611
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@ramitbanerjee8, dear sir i received your comment which you have so promptly deleted now since you contradicted yourself in it, I must have really done something right which ticked you off any which ways first you say Cup and handle is a reversal pattern only now in the latest comment which you have happily deleted, you accept in an uptrend it is a consolidation pattern that too post some half educated guy (like me according to you) pointed it out to you, I think an educated guy especially like you should know such basic things, about the disclaimer you were pointing, yes i keep the disclaimer so that educated morons like you who think they know more than everyone on Trading View but do not like to share their ideas with others stay away from my charts and ideas.
FYI inspite of being half educated I m trying to share any little knowledge which I have with the community so that they might benefit and not pointing out shortcomings like some selfish educated pain in the wrong place person.
Hope I dnt see any more comments from Mr Know It all on my charts which will keep me sane and safe from my boiling brain.
Cheers :)
DISCLAIMER FOR ALL : VIEWS ARE FOR LEARNING PURPOSE ONLY
CONSTRUCTIVE CRITICISM WELCOME
KNOW IT ALL & SELFISH MORONS TO STAY AWAY FROM MY CHARTS & IDEAS
ramitbanerjee8
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@vaibhavmehta611, i am surprised too BY not finding my post/reply here !!! but , i had no reason to delete it ! EVERY 1 KNOWS , BOTH , C&H N ROUNDING BOTTOM ARE REVERSAL PATTERN . CONSOLIDATION IS A PART OF THE WHOLE PATTERN ! LIKE YOUR LOUD MOUTH , YOUR PEASIZED BRAIN ARE PARTS OF YOUR BODY , BUT , THEY ARE NOT WHOLE BRAINLESS , HALF EDUCATED , HALF ARSED SHIT THAT YOU ARE !
LEARN , DEEPLY FROM YOUR HEART . NOT TO FART LOUD LIKE AN ASSHOLE IN PUBLIC ! THAT IS EMABARRASSING , IRRITATING .
GOD ( IF THERE'S ANY ) BLESS YOU ...
vaibhavmehta611
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@ramitbanerjee8, Either you are trying to act innocent post deleting or even Trading View suspects your activity as suspicious and deleted your post, so if everyone knows this about rounding bottom and C&H then you should not have any problem to accept the fact that you made a mistake and when someone points it out have the balls to accept it rather than getting offended and trying to prove someone else wrong, as for my pea sized brains they are perfectly working fine and are in the right place unlike yours which are guarded by the patella and not your skull, kindly buzz off from my charts and comments and dirty your diapers and seek attention somewhere else.
Vaibhav ji.. Thanks for the wonderful analysis. More than analysis I like your attitude towards learning and dealing with things as I read the whole comments and replies . I really appreciate your efforts sir. keep it up for the learners like me.