Tomorrow’s Thoughts?, page-58

thanks mate. I never quite understood the reasoning behind cup and handle in relation to buyers vs sellers.

I just found this and it seemed to fit but I guess you can find patterns in clouds if you look hard enough. Price and volume action is what I like. Plus it is great when you post who is the buyers ie insto's or retail.


It is worth considering the following when detecting cup and handle patterns:

• Length: Generally, cups with longer and more "U" shaped bottoms provide a stronger signal. Avoid cups with a sharp "V" bottoms.
• Depth: Ideally, the cup should not be overly deep. Avoid handles that are overly deep also, as handles should form in the top half of the cup pattern.
• 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.