Jay_shree
Education

Basic Pattern: explanation of Cup and Handle pattern.

NSE:NIFTY   Nifty 50 Index
How to trade Cup and Handle pattern?

The Cup and the handle pattern is basically the retracement from the prior top to about 1/3rd of the vertical height of the cup.

Cup and Handle pattern can be seen both as a bullish continuation or reversal pattern.

Cup
The Cup is usually “U” shaped and may be considered as a rounding bottom with almost equal highs on the both side.

Handle
The handle is usually the pullback and the pullback is about 1/3rd of the size of prior advance.
The smaller the pullback, better is the strength of the formation and higher the possibility of breakout.

Volume
The breakout from the handle’s resistance should be appear with increased volume therefor conforming the breakout.

Target
The projected target from the breakout is usually the vertical distance from the high to the bottom of the cup.

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Comments

YOU MANY TIMES WRITE VOLUME AND HEAVY VOLUME BUT HOW CAN WE SEE VOLUME IN NIFTY AND BANKNIFTY IT IS NOT AVAILABLE
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Thank you
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Hi, Jay Shree, Firstly, Thanks for your valuable ideas and we want to more info for cup & handle patter.
Could you please confirm when the patter is invalid ?
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Gautam_Rajwani Gautam_Rajwani
Sorry for typo mistake, Please read Pattern instead of Patter..
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Thanks for sharing knowledge... based on your expertise, what is the best time frame for this and any pattern?
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Whatever the reason either technical or package tomorrow your analysis going to super bumper hit and already SGX NIFTY is trading at 9700
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I shorted 2 Lot 20000 CE and 2 lot 21000 CE bank nifty on last Friday. If on Monday market opens 500 point gapup mein toh lut gaya
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Nice analysis.
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Nicely explained😊
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👍
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