Cup-with-Handle

THE 3 MOST PROFITABLE

STOCK CHART PATTERNS
12-33%
Depth %

Base length
Want to learn how to invest better? One of the One key factor of stocks with big gains: they
best skills you can learn to achieve bigger returns traded in similar chart patterns just before making
is recognizing a stock chart pattern. huge run-ups in price.

What is a stock chart pattern? Stock charts show
the price and volume of a stock over a period of
days, weeks, months or years. Investor’s Business
Daily researched decades of the best stocks to find
Flat Base
the traits that the big winners had in common.
Armed with the knowledge of how past winning
stocks behaved, you can trade smarter and achieve
the highest probability of success. Start by learning
the three most common stock chart patterns that
precede big jumps in stock value.

CUP-WITH-HANDLE
Cup-with-Handle
3. T he buy point occurs
Max when a stock moves up
Depth %

15%
through the handle’s high
Base length
on heavier than normal
12-33% volume, at least a 40%
Depth %

increase above the stock’s

Base length
average daily volume.
2. Handle should form in the
1. Base Length: T he cup-with- upper half of the cup, and within
handle should occur over at least 7 15% of the old price high.
Double Bottom
weeks, but can last much longer.

Flat Base
DOUBLE BOTTOM 3. T he buy point of the
Cup-with-Handle
double bottom occurs
when the stock
surpasses the middle of
the “W” asMax
it’s coming up
Depth %

15%
Depth %

Max
30%
from its second bottom.
Base length 12-33%
Depth %

2. Sometimes, a double bottom may

Base length form a handle area, in which case
Base length

the buy point will be 10 cents

1. T he double-bottom looks like the above the high of the handle, just
letter “W”, but the second leg of the W like the cup-with-handle.
should go a little lower than the first.
Double Bottom
Flat Base
FLAT BASE 3. T he buy point for the
flat base is 10 cents above
Max
its previous high on volume
at least 40% above its
Depth %

15%
average daily volume.
Depth %

Max
30%
Base length

2. T he flat base has a mild

1. T he flat base has a minimum time correction, not more than
frame of 5 weeks, rather than the
Base length
15%, and the price range
7 weeks minimum required of the cup- will usually remain tight
with-handle or double-bottom bases. throughout the pattern.
Double Bottom
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