CUP & HANDLE

Bullish Continuation Pattern

Formation :
1. Try to draw Uptrend. (Only forms at Uptrend/ Higher Levels)
2. Focus on 3 months or above time periods.
3. A large structure ( Consolidation/ not V Shape, should be U shape) Cup shape
pattern followed by Small Handle pattern.
4. Horizontal Resistance line is more powerful.
5. Handle : Depth of handle should be between 1/3 and 1/2 of the depth of the
cup. (if 100 points is the depth of the cup, the handle depth should be in between
30 to 55 range)

Points to Remember :
1. This pattern forms Generally near All time high or Top levels, Only Buying Will
be there, a small consolidation and the bull trend continues to all time highs
taking help of this pattern.
2. There is no “Inverse Cup and Handle”.
3. It can take upto 10-18 months also.

Condition for breakout - Refer to the Breakout rules.

Note: If you observe the pattern in downtrend then its not a cup and handle
pattern, Remember this is a bullish continuation pattern.

Please refer to following trades for examples.

How to take Trade?
Stop loss is lowest level of Handle
Thumb rule time frame for tgt: Half of the time frame of formation. If a pattern took 1 year to
form, then it will achieve tgt in next 6 months.

Activity:​ Update the buy, tgt Sl levels, also spot the time taken and identify the trend, Track this
for coming weeks.

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