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
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Excellent movement by cup and handle pattern in nifty....1% up