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Cupandhandlepattern

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
NIFTY METAL - Just a viewKey highlights: 💡⚡ 📊 Currently CNXMETAL trading at level 6027 and 6019 is its support level which is also cup & handle neckline which may work as support line. 📊 If it is breaking support level one can go for SHORT into METAL sector. IF SUPPORT LEVEL IS BREAK THEN ONLY GO FOR SHORT TRADE. ⚠️ Important: Always maintain your Risk & Reward Ratio. ⚠️ Purely technical based pick. ✅Like and follow to never miss a new idea!✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat🔁 Happy Navaratri 🕉️ 💃🏻🕺🏻 Happy learning with trading. Cheers!🥂
NSE:CNXMETAL
by radha_23
SUNPHARMA: Cup and Handle BreakoutTrading Strategy : Stock has given a breakout of the formation of cup and handle . One should buy the stock near the current level i.e. 912 and keeping a stop loss of 856 , look for the target of 1050-1115 which is the measured target zone.. Buy: 912 Stop loss : 856 Targets: Tgt 1: 1050 Tgt 2: 1115 Theory: The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. It was developed by William O'Neil and introduced in his 1988 book, How to Make Money in Stocks. As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right-hand side and the handle is formed. A subsequent breakout from the handle's trading range signals a continuation of the prior advance. Trend: To qualify as a continuation pattern, a prior trend should exist. Ideally, the trend should be a few months old and not too mature. The more mature the trend, the less chance that the pattern marks a continuation or the less upside potential. Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. A “V” shaped bottom would be considered too sharp of a reversal to qualify. The softer “U” shape 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. Cup Depth: Ideally, the depth of the cup should retrace 1/3 or less of the previous advance. However, with volatile markets and over-reactions, the retracement could range from 1/3 to 1/2. In extreme situations, the maximum retracement could be 2/3, which conforms with Dow Theory. Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times it is just a short pullback. The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes it is prudent to wait for a break above the resistance line established by the highs of the cup. Volume: There should be a substantial increase in volume on the breakout above the handle's resistance. Target: 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.
NSE:SUNPHARMALong
by TradingSutra
20
Possible Cup and handle Breakout in ICICI SecStock has given breakout from its cup and handle pattern with good volume in Daily time frame. If stock is coming for retest its previous resistance of 540-530 should act as immediate support. For further upside movement, stock has to close above 557. All the possible targets are marked on the chart. Maintain strict stop loss at 490. This is just a view, not recommendation to trade. Do your own analysis before making any investment. Do like and share this idea and share your opinion in the comment section. NSE:ISEC
NSE:ISECLong
by KaravaliTradingZone_Official