Interestingly SMN's chart shows a prime example of a cup and handle formation, a chart pattern that a lot of members of HC do not entirely understand. Its different to a rounding bottom pattern which is often what posters mistake the pattern for.
C&H patterns
- consolidate a prior uptrend, and lead to its continuation
- involve a retracement of either 50% or 61% of the original up-move
- mantain a fairly horizontal level of resistance at the top of the 'cup'
- break out of a confined trading range at the completion of the consolidation (i.e. 'handle')
- they aren't a reversal pattern of a downtrend
- they aren't necessarily prevalent even if the chart has a U shape to it, more often than not the pattern is a rounding bottom, not a cup and handle
Hopefully that clears up a small misunderstood matter for some here!
- Forums
- ASX - Day Trading
- day traders aftermarket lounge 28th Jluy
day traders aftermarket lounge 28th Jluy, page-13
-
- There are more pages in this discussion • 19 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online