cup and handle, page-6

Hi Haspete, a cup In both down and up trends.

Point 3
3.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 is conforms with Dow Theory.

The markets have been very volatile of late, which could explain the depth of the cup.

A cup and handle pattern is a bullish continuation or REVERSAL PATTERN where the formation resembles a “cup with a handle to its right.” Here, the price gradually falls after marking a certain high before moving up again in a similar pace. The price, though, weakens again and forms a “handle” on the top half of the “cup” before breaking out. In general, a price target is set by projecting the height of the cup then added to the point of breakout.

http://www.laidtrades.com/chart-patterns/cup-and-handle/