Natco Pharma - Cup and Handle Weekly Time Frame
hello dear Traders,
Once again I have come up with another cup and handle pattern
this pattern is proving very beneficial for me during trading. i will cover the steps in this example of NATCO Pharma.
Step - 1 Pattern Recognition - Very easy pattern Cup and Handle. It is a technical chart pattern used in financial markets and easily recognizable on the higher time frames.
Step 2 - Formation: The whole pattern takes a time period of 35 weeks to 55 weeks to get formed including the cup. The cup formation begins with drop in the price and second part of the cup is formed after a gradual rise, resembling the shape of a tea cup (Right side of the pattern) as marked on the chart. Volumes Decrease when the cup is starting to get formed. Rises when the second of the pattern is formed.
Step 3 - Consolidation: Volumes Decrease when the cup is starting to get formed. Rises when the second of the pattern is formed. Followed by a consolidation or a rounding bottom (the cup's bottom).
Step 4 - Handle Formation: A subsequent decline in price forms a smaller consolidation known as the handle. This is the most crucial part of the handle formation.
Step 5 - Volume Analysis:Volume tends to decrease during the formation of the handle. The same is seen happening the handle which is getting formed.
Step 6 - Breakout: The pattern is considered complete upon a breakout, with prices surging beyond the resistance level.
Step 7 - Confirmation : Volume often increases during the breakout, confirming the pattern's validity. The same is being expected in the case of the Natco Pharma on a Weekly time frame.
Step 8 - Target Calculation: Targets are set by measuring the distance from the cup's bottom to the lip, then projecting it upward from the breakout point. as i have marked two targets - one short term another long term targets
Step 9 - Conclusion - Bullish Continuation: Considered a bullish continuation pattern, signaling potential upward momentum.
i hope you have liked my idea presentation. Do let me know what you think. Thanks everyone for the support
Once again I have come up with another cup and handle pattern
this pattern is proving very beneficial for me during trading. i will cover the steps in this example of NATCO Pharma.
Step - 1 Pattern Recognition - Very easy pattern Cup and Handle. It is a technical chart pattern used in financial markets and easily recognizable on the higher time frames.
Step 2 - Formation: The whole pattern takes a time period of 35 weeks to 55 weeks to get formed including the cup. The cup formation begins with drop in the price and second part of the cup is formed after a gradual rise, resembling the shape of a tea cup (Right side of the pattern) as marked on the chart. Volumes Decrease when the cup is starting to get formed. Rises when the second of the pattern is formed.
Step 3 - Consolidation: Volumes Decrease when the cup is starting to get formed. Rises when the second of the pattern is formed. Followed by a consolidation or a rounding bottom (the cup's bottom).
Step 4 - Handle Formation: A subsequent decline in price forms a smaller consolidation known as the handle. This is the most crucial part of the handle formation.
Step 5 - Volume Analysis:Volume tends to decrease during the formation of the handle. The same is seen happening the handle which is getting formed.
Step 6 - Breakout: The pattern is considered complete upon a breakout, with prices surging beyond the resistance level.
Step 7 - Confirmation : Volume often increases during the breakout, confirming the pattern's validity. The same is being expected in the case of the Natco Pharma on a Weekly time frame.
Step 8 - Target Calculation: Targets are set by measuring the distance from the cup's bottom to the lip, then projecting it upward from the breakout point. as i have marked two targets - one short term another long term targets
Step 9 - Conclusion - Bullish Continuation: Considered a bullish continuation pattern, signaling potential upward momentum.
i hope you have liked my idea presentation. Do let me know what you think. Thanks everyone for the support
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