Cup and handle pattern

NSE:NIFTY   Nifty 50 Index
Trading "Cup and Handle" pattern is a two fold process. First a "Handle" can be traded as a
corrective pattern and secondly as a continuation pattern (of the prior trend) after a breakout
from the top of the "Cup." The handle part (right side) usually corrects about 25% to 38% (of
depth of the Cup) from the high pivot point to the bottom of the Cup. After the correction
(handle), the pattern will pick its prior trend and trade in a breakout fashion above the 'top' of
1 the 'Cup'.

Trade: The best trading opportunity is generated when the price clears the top of the "Cup."
A "long" trade is entered when the price closes above the high of the cup.

Target: Most "Cup & Handle" patterns result from 62% to 100% the depth of the "Cup" from
the breakout levels.

Stop: Place a "stop" order below the low of the handle to protect the trade.
Trade closed manually: Excellent movement by cup and handle pattern in nifty....1% up

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