The cup and handle pattern has always been the one that helps traders eat the most, but it's almost hard to spot it.

This pattern is very suitable for traders with the criterion of "patience is wealth" and "time is profit". Indeed, if you identify a cup correctly, and especially that cup has a handle, it looks like you have made a profit equal to a dozen trades combined. That is the advantage of this model.

However, due to the scarcity and long formation time, the get-rich-quick traders less favored this pattern, leading to schools and teachers often saying very little about the cup and handle pattern. Of course, you will not learn properly how to define what a cup is, and how to trade when you see it.


HOW TO FIND OUT THE ORIGINAL, IT ISSUE LIKE A CUP IS IT OK?

How to define a cup pattern is for you do not know.

See the picture and then look at the text:


1. Section A to B (cup wall): To the left of the cup is a very steep and steep drop in price.

2. Segment from B to C (cup bottom): After a long fall, it starts to slow down and go sideways.
  • This horizontal passage can be very short or very long. This is the stage most likely to last of the 4 phases of cup formation.
3. Section C to D (cup wall): After the sideways, the price will increase quite sharply. Before the price decreased much, a few days, now the price will increase again, the same time period.

4. Segment D to E (handle) After a period of strong increase, the price starts to slow down, or a slight recovery then increases again, the price will choppy or sideways in this area. This place is like a cup handle. The price range here is very important, as it will predict the next direction the price will go.

THERE IS A POOL, HOW TO DRINK?

There are two ways to enter orders, Buy is fine, and Sell is fine, depending on how the price moves.

Enter a Buy order while the price is at the bottom of the cup

This is the time when the price has not run out of the cup yet, that is, the cup has not been completely formed. This is for traders with a bit of experience, that is, they predict, after the B-C period, the price will go up to make a cup, and they place a Buy order. But we will Buy with the following rules:


Enter a Buy or Sell order when the handle is finished

This is the most common strategy learned in school

After forming the D-E handle, the price will create resistance and support as shown below


From this resistance and support, we shall wait and see if the price breakout resistance or a support breakout of the handle.

In case if you breakout resistance, you place a Buy order, of course, the price will run extremely strongly, you don't need to put up take profit for tired.

The breakout price field supports, you place a Sell order, and also don't place take-profit. The price will run to the point where you cannot imagine it.

But often when the cup is formed, the bulls take control, so the price usually goes up more than it goes down. That is why books and magazines often teach you, when you meet the cup, just buy like that.

Here is an example of how to place a Buy order with a cup pattern:


PRICE WILL GO TO REMOVE IF YOU CAN CAPTURE THE CUP PATTERN

The price goes very far, but you can measure the target yourself. This is how it is determined. You calculate the price from the bottom of the cup to where you placed the order, that is your goal:


There are a few other ways, like using the Fibonacci project, ... But well, it's okay to say less and use it less effectively.

MEET THE COOKING COUPLE CAN I SAVE?

The upside-down cup or the upside-down cup is also a cup, as long as it is not cup-shaped. Here is an upside-down cup:


Can you see, the price still breakout immediately support D-E handle and goes down very strongly.
Draw 3 more supports, these 3 supports are an opportunity for experienced traders to enter orders when the cup has not formed. The newcomers must follow the cup to comply, only hit when the cup is clear.

Let's add an example of how to place orders and set goals for the cup:


You see, the price runs past its very long target. Please add that this pattern has a very high probability of eating, you just can wait and make a cup.

IS THIS A COUPLE?


The USDCHF Monthly framework appears to have formed half a cup.