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Cupandhandlepattern

07 Insightful approaches to learning cup & handle pattern ⭕ Price Action chart pattern similarity !!!⭕ Ranges candles shows the phase of accumulation or distribution It helps trader to track bearishness and bullishness of the chart, in this phase accumulation can be seen because of bull Bo. There is so many ways to approach chart patterns, everyone has different approaches and different insights. Some Examples of Cup & Handle pattern we have seen:- 1) 2) 3) 4) 5) 6) POST Your Findings in comment section any other stocks with some pattern you observed we can discuss as a community there !!! Happy To Learn here in TRADINGVIEW with charts #ThankU For Checking Out Our IDEA , We Hope U Liked IT 📌 🙏FOLLOW for more ! 👍LIKE if useful ! ✍️COMMENT Below your view !
NSE:KOTAKBANKEducation
by ReviveTraders
Cup and Handle chart patternThis chart pattern is shaped like and resembles like a cup and handle that's why its named the same as cup and handle chart pattern. Shape: A “U” shaped bottom is preferred over a “V” shaped bottom as it indicates more consolidation. Ideally, the highs on either side of the cup should be equal. Duration of formation: The cup can take anywhere from 1 to 6 months to form, while the handle should take 1-4 weeks. Confirmation: The pattern is confirmed as bullish when the price breaks above the previous highs (the neckline) with strong volume. A buying opportunity arises when the price moves above the old resistance level (right side of the cup). Volume: Volume should decrease as prices fall to form the base of the cup and remain below average. As the price begins to rise again, volume should increase. Target: The profit target is calculated based on the depth of the cup. Measure the distance from the bottom of the cup to the neckline and extend that distance upward from the breakout level. Also it can give sometimes three times of depth of the cup. Risk Management: A stop-loss can be placed at the bottom of the handle or below a swing low within the handle if there were multiple price oscillations. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Thanks RK💕 Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:SUZLONEducation
by RK_Chaarts
7
Few Most Profitable Chart Patterns1) Double Top, a Bearish reversal chart pattern It is a trend reversal chart pattern formed after good bullish price movement (a continuous upward price movement for a good duration) where the upward price movement loses its steam (formed a first top) and it retraces a bit (to neck line or mid point). Then again it moves in direction of original trend and reaches the first top level there by forming second top . It again cannot move above first top and start moving to neckline (NL). Once the neck line is broken its fall in price is steep. There starts a downtrend. Target The Height of the tops will be taken as a target. Stoploss It is recommended to keep a stop loss of 1.5% above the neck line. 2)Double Bottom, a Bullish Reversal Chart pattern It is a trend reversal chart pattern formed after good bearish price movement (a continuous downward price movement for a good duration) where the downward price movement loses its steam (formed a first bottom) and it retraces a bit (to neck line or mid point). Then again it moves in direction of original trend and reaches the first bottom level there by forming second bottom . It again cannot move below first bottom and start moving to neckline (NL). Once the neck line is broken its rise in price is steep. There starts an uptrend. Target The Height of the bottoms will be taken as a target. Stoploss It is recommended to keep a stop loss of 1.5% below the neck line. 3)Cup & Handle, A Bullish Continuation pattern It is a pattern where the Price movement of a chart resembles a teacup . It consist of two parts: 1) A cup: A cup formation happens when the price moving in a uptrend shows a pull back followed by a consolidation period which makes the bottom of the cup and finally the reverse back to upside continuing the uptrend. Usually the pattern looks like a 'U' to round bottom. The deeper the 'U' or round shape the reliable the pattern is. 2) A Handle : After the formation of right highs of a round cup, there is a pull back before continuation of the trend which forms the handle of this pattern. It is formed in the right hand side of the cup. Entry: A Neckline breakout supported by huge volumes is the confirmation of this pattern that the previous trend has resumed. Trade should be taken only after the neckline Breakout Target : The height of the cup will be taken as a target. Stoploss: Stop loss should be placed under the handle low
HEducation
by Divyaapugal
4
One chart, different trading systems!Hi all, hope you guys are doing well. We retailers spend a lot of time in searching for that "holy grail" in trading. The majority of the time our search is centered around different strategies. However, in my opinion, "Strategy is overvalued whereas risk management is undervalued" . A chart can be analyzed in different ways by different traders. A trader using patterns will analyze the same chart with a different perspective as opposed to a trader using pure support-resistance levels or a trader using indicators such as moving averages. The aim of this post is just to make you understand that you shouldn't run after different systems. Rather, focus on managing the risk. Exhibit 1: The Cup and Handle system Exhibit 2: The Support-Resistance system Exhibit 3: The Triangle pattern system Exhibit 3: The Moving averages system Thanks for reading. I hope you found this helpful! 😊 Disclaimer : This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! Rajat Kumar Singh (@johntradingwick) Community Manager (India), TradingView
NSE:SOLARINDSEducation
by johntradingwick
32
The Cup & Handle patternHey everyone! 👋 Today we are going to share an informative write-up about the “Cup and Handle” pattern along with a few exhibits that may help you solidify your understanding of this chart pattern. Please remember this is an educational post to help all of our members better understand concepts used in trading or investing. This in no way promotes a particular style of trading! The post will shed some light on the following topics: → Basics and identification of the pattern → Components → Important aspects What is a Cup and Handle pattern? • The Cup and Handle is a bullish continuation pattern that resembles a cup with a handle. • The cup is visualized as the alphabet "u" and looks like a rounding bottom pattern. • The handle is formed as a range or a smaller “u”. • The cup marks a consolidation phase whereas the handle has a slight downward move, which marks a retest phase. • The handle is meant to signal a buying opportunity. When this part of the price formation is over, the stock may reverse the course and resume the prior uptrend. Components of a Cup and Handle pattern: The cup and handle chart has 3 main components: • Cup • Handle • Neckline Important aspects: 1. Prior Trend: The cup and handle pattern is a bullish continuation pattern, hence the prior trend should be an uptrend. 2. Cup length : In general, the cups with longer and more "U" shaped bottoms that resemble a rounding bottom, provide a stronger signal. This ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case. In general, cups with sharp "V" bottoms should be avoided because there is almost no consolidation in this case. 3. Cup depth: Normally, the cup should not be overly deep. In practice, the cup depth can be up to 60-70% of the last swing move. (This can vary widely, though.) 4. Handle: The handle can occur in the form of a flag, a pennant, or a rectangular consolidation. This is the final retracement phase before the impulsive move higher. By and large, the handle can retrace anywhere between 40-60% of the depth of the cup. 5. Breakout: Bullish confirmation comes when the pattern breaks above the neckline (made using the prior highs) with a good volume. 6. Volume: In general, the volumes should decrease during the formation of the base of the cup as well as during the formation of the handle. Conversely, the volumes should pick up when the stock begins to make its move higher, back up to test the previous high. 7. Target: Using the measurement objective, the target comes out to be equal to the depth of the cup. It can be measured by calculating the distance between the bottom of the base and the neckline. 8. Stop-loss: Ideally, the stop loss is placed at the lowest point of the handle. But if the price oscillated up and down a number of times within the handle, the stop-loss can also be placed below the most recent swing low. Exhibit: Cup and Handle pattern with a failed breakout Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , YouTube , and Telegram . 💘
NSE:APARINDSEducation
by TradingView
16
Cup and Handle PatternA Cup and Handle pattern is a bullish continuation pattern that resembles a teacup on a candle chart followed by a breakout. The cup part of the pattern is where the price gradually changes its direction from bearish to bullish. The handle part is when the price pullback slightly before roars higher and continues the previous trend. Cup and handle is used to understand the reinforcement of the trend and explains in case you want to double your position or sustain the position for a longer time period. This pattern can take between 30 to 60 candles to form on any given time resolution. 1. Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. Generally, cups with longer and more “U” shaped bottoms, the stronger the signal. The cup should not be too deep. The depth of the cup should retrace 1/3 or less of the previous advance. Volume should dry up on the decline and remain lower than average in the base of the bowl. 2. Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes this handle resembles a flag. If the right side of the handle breaks above the peak formed between the cup and the handle, it confirms that the pattern is complete and that the uptrend will resume. There should be a substantial increase in volume on the breakout above the handle's resistance. The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.
HEducation
by MandeepSinghKohli
18
Anatomy of Cup & Handle Pattern Explained with examples ☕What is Cup & Handle Pattern ? 1.A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift. 2.A cup and handle is considered a bullish signal extending an uptrend, and is used to spot opportunities to go long. 3.Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern. Some Examples from -MY OWN ANALYSIS :- ----------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- 1 Cup with Handle Base 2 Saucer Base The Saucer base is basically a long, drawn out cup base. Characteristics of a Saucer are: 1. A depth of 12-20%. 2. A length of 7 weeks to more than a year. 3. If a handle forms then the buy point is the peak just before the pull back plus 10 points. 4. However a handle will often not form after the long period of this base. If there is no handle then the buy point is the peak on the left side of the saucer plus 10 points. 3 Tight Closes and Narrow Price Spreads Double Bottom Flat Base – (Second Stage) Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend Tight Closes and Narrow Price Spreads Prior Sequence 1. Uptrend 2. Proper Base 4 Ascending Base – (Second Stage) Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend Pull-backs occur at general market declines Square Box – (Second Stage) Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend Buy Point = $ 0.10 above highest peak < 10-15% 4 – 7 Weeks 5 3 – 4 Weeks Tight – (Second Stage) Second stage base that follows an uptrend off of a stage 1 proper base (cup with saucer, saucer, double bottom ) and an uptrend. Volume over 3 – 4 weeks is well under control Weekly closes within 1%, however, 1 week can be 1.5% Opportunity to add High Tight Flag The pattern forms when a stock surges 100% to 120% in four to eight weeks. The stock then corrects 10% to 25% in three to five weeks. The ideal buy point is the high of the flag plus 10 Points Breakout from Proper Base followed by price run-up of > 100% within 4-8 weeks 3 – 5 weeks correction between 10 – 25% Buy Point = 0.10 higher than peak of correction 6 Base on Base If an uptrend is less than 20% and the stock builds another base, it's called a "base-on-base" pattern and is counted as part of the previous base Conclusion The cup and handle pattern is a bullish continuation pattern triggered by consolidation after a strong upward trend. The pattern takes some time to develop, but is relatively straightforward to recognize and trade on once it forms. As with all chart patterns, trading volume and additional indicators should be used to confirm a breakout and continuation of the original bullish price movement.
NSE:FEDERALBNKEducation
by ReviveTraders
8
Trading Patterns 101 - The Cup & Handle patternWhat is a Cup and Handle pattern? • The pattern resembles a cup with a handle, where the cup is in the shape of a "u" and the handle has a slight downward drift. • This drop, or “handle” is meant to signal a buying opportunity. When this part of the price formation is over, the stock may reverse the course and reach new highs. • It is a bullish continuation pattern i.e. it extends the existing uptrend Parts of a Cup and Handle pattern: The cup and handle chart has 3 main components: • Cup • Handle • Neckline/Resistance Important aspects: 1. Prior Trend: The cup and handle pattern is a bullish continuation pattern, hence the prior trend should be an uptrend. 2. Cup length: Generally, cups with longer and more "U" shaped bottoms provide a stronger signal. It should resemble a rounding bottom. This ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case. Avoid cups with sharp "V" bottoms because there is almost no consolidation in that case. 3. Cup depth: Ideally, the cup should not be overly deep. In practice, the cup depth can be up to 60% of the last swing move. In my opinion, the best cups often have a depth of about 50% of the last swing. 4. Handle: Avoid handles that are overly deep also, as handles should not exceed 50% depth of the cup. The best cup and handle patterns have a shallow retracement on the handle (not more than 1/3 of the cup). However, in some situations, the price may retrace up to 0.618 Fibonacci level. 5. Breakout: Bullish confirmation comes when the pattern breaks above the neckline made using the prior highs with a good volume. 6. Volume: Volume should decrease as prices decline and remain lower than average in the base of the bowl; it should then increase when the stock begins to make its move higher, back up to test the previous high. 7. Target: The profit target is equal to the depth of the cup. It can be measured by the distance between the bottom of the cup and the neckline and extending that distance upward from the breakout level. 8. Stop-loss: Ideally, the stop loss is placed at the lowest point of the handle. But if the price oscillated up and down a number of times within the handle, the stop-loss can also be placed below the most recent swing low. Examples of the Cup & Handle pattern: Like always, if anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it. Happy learning. Cheers!
NSE:SAIL1!Education
by johntradingwick
18
Understanding Cup and Handle pattern with ONGC1. Cup and handle pattern was defined by William J. O'Neil in 1988 2. It is considered as a bullish pattern continuation pattern 3. In cup and handle pattern, volume of the security should decrease as price declines and remain lower than the average at the base of the cup 4. The volume should pick up when the price of the security moves higher 5. Target is usually calculated as the price difference between the bottom of the cup and the resistance(depth of the cup) 6. The handle of the cup is usually a consolidation phase that is used to accumulate the stock Let's not forget to thank ONGC for being a perfect example of Cup and handle pattern. Hope you learnt something new. Please post in the comments if you have any queries and give a like if you found the post useful. Happy learning! Regards, Segan
NSE:ONGCEducation
by segan_the_learner
Basic Pattern: explanation of Cup and Handle pattern.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. If you want more education ideas please LIKE, and give SUGGESTIONS in the COMMENT box below.
NSE:NIFTYEducation
by Jay_shree
44