Good day everyone,
I would like to take this time to share a little jewel i use within my trading from time to time. We will focus only on the start of the cup and handle formation, inverted also.
Load the TF you enjoy trading. I will use the 1h but it works on the 1m also.
Period 8 , green, simple, close
Period 18, red, simple, close
Once you you have done that let us simply think about what a cup and handle formation means in words. The left side of the cup will represent the breakout… The breakout could be to the upside or downside. The bottom portion of the cup will represent the cat bounce or the slow accumulation we know as the market trading flat. Here is where most people enter their positions trying to catch the top or bottom. Finally, the right side of the cup will represent the 100% “correction” of The Last Move. Remember The Last move Being The Left Side Of The Cup.
With That Said. Let Us Look At Some Charts.