A Cup & Handle pattern may have formed (be forming
Post# of 1023
Posted On: 03/21/2016 10:02:54 PM
A Cup & Handle pattern may have formed (be forming):
See image below
Link if you cant see image
http://i.imgur.com/EJhGMfR.png
I could be wrong, but what do you think? Is this a cup and handle pattern?
Most requirements are met:
To be a Cup & Handle..
1. To qualify as a continuation pattern, a prior trend should exist.
Ideally, the trend should be a few months old and not too mature. The more mature the trend, the less chance that the pattern marks a continuation or the less upside potential.
My thought:
Check! The trend prior to the first yellow bar was a downward trend.
2. Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. A “V” shaped bottom would be considered too sharp of a reversal to qualify. The softer “U” shape ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case.
My thought:
Check! The cup is not 'V' shape, and has equal prices on both sides of the cup (yellow highlights) at .008
3. Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times it is just a short pullback . The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes it is prudent to wait for a break above the resistance line established by the highs of the cup.
My thought:
Check. This would be a very short handle, although the requirement says the smaller the retracement the better. If this is the case, .008 would be the breakout. Although I see .01 as being closer to any breakout.
4. Duration: The cup can extend from 1 to 6 months, sometimes longer on weekly charts. The handle can be from 1 week to many weeks and ideally completes within 1-4 weeks.
My thought:
Check! The cup is about 4 months wide
5. Volume: There should be a substantial increase in volume on the breakout above the handle's resistance.
My thought:
We have to wait. If this is a cup & handle, volume would have to begin to increase dramatically.
6. Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.
My thought:
We'd have to wait. If this is a cup & handle, we'd move up to around .012 cents on the run before the chart resets for the next advance.
I'm not worried if this isn't a cup & handle pattern. This post is more out of interest than trying to figure where we're going pricewise.
See image below
Link if you cant see image
http://i.imgur.com/EJhGMfR.png
I could be wrong, but what do you think? Is this a cup and handle pattern?
Most requirements are met:
To be a Cup & Handle..
1. To qualify as a continuation pattern, a prior trend should exist.
Ideally, the trend should be a few months old and not too mature. The more mature the trend, the less chance that the pattern marks a continuation or the less upside potential.
My thought:
Check! The trend prior to the first yellow bar was a downward trend.
2. Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. A “V” shaped bottom would be considered too sharp of a reversal to qualify. The softer “U” shape ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case.
My thought:
Check! The cup is not 'V' shape, and has equal prices on both sides of the cup (yellow highlights) at .008
3. Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times it is just a short pullback . The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes it is prudent to wait for a break above the resistance line established by the highs of the cup.
My thought:
Check. This would be a very short handle, although the requirement says the smaller the retracement the better. If this is the case, .008 would be the breakout. Although I see .01 as being closer to any breakout.
4. Duration: The cup can extend from 1 to 6 months, sometimes longer on weekly charts. The handle can be from 1 week to many weeks and ideally completes within 1-4 weeks.
My thought:
Check! The cup is about 4 months wide
5. Volume: There should be a substantial increase in volume on the breakout above the handle's resistance.
My thought:
We have to wait. If this is a cup & handle, volume would have to begin to increase dramatically.
6. Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.
My thought:
We'd have to wait. If this is a cup & handle, we'd move up to around .012 cents on the run before the chart resets for the next advance.
I'm not worried if this isn't a cup & handle pattern. This post is more out of interest than trying to figure where we're going pricewise.
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There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
http://investorshangout.com/Joeys-Investment-Board-91611/
Invite Only
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.
Disclaimer:
As used herein, the terms "You" and "Your" shall mean you, individually, the reader, and each other party on whose behalf you may use the contained information at any time.
All references to "My", "I", and “The writer of the above post” shall refer to the creator of the username Joey68.
Do NOT invest unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
There is a very high degree of risk involved in trading and investing. Past results are not indicative of future returns. I assume no responsibility for your trading and investment results. You should NOT rely on the information in the above post to make any decision or take any action.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are OPINION and NOT fact and are for entertainment purposes only. Do your own research and make your own decisions based on your own conclusions.
ALL OF MY STATEMENTS, including but not limited to, POSTS, MESSAGES, PRIVATE MESSAGES, and RESPONSES are NOT advice, and are NOT designed to substitute the expertise and judgment of a professional. It is your responsibility to seek investment advice during all stages of your investments. It is your responsibility to evaluate the accuracy, completeness and usefulness of the information in the above post.
I am NOT a professional.
I do NOT work for you.
My posts are NOT investment advice. I am not paid to post.
There is no correlation between the number of posts I write per day and your assumed success of a company.
It is NOT my responsibility to inform you of my own personal investment decisions.
It is NOT my responsibility to inform you when it is time for you to buy, hold, and/or sell a position.
I have no control over, and am not responsible for the actions of others who copy, store, edit, change, prepare any derivative work of or alter in any way any of the content provided in my posts.
Errors and Omissions expected. The writer of the above post accepts no liability or responsibility for any errors or omissions contained in the above post or contained within this Disclaimer.
The writer of the above post shall NOT accept any liability for the accuracy or completeness of the information contained in the above post, for any reliance placed by any person on the information contained in the above post, or for any damage or loss, however caused, in connection with the use or reliance on any information contained in the above post.
The above post may contain links to websites owned and operated by third parties. These links are provided for informational purposes only and are NOT endorsed by the writer of the above post. The writer of the above post has no control over the contents of any linked website and bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links.
YOU ACCESS ALL LINKS ENTIRELY AT YOUR OWN RISK.
The writer of the above post makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, or the information contained on these websites.
The writer of the above post accepts no liability for any damage or loss, however caused, in connection with the use of or reliance on any information, material, products, or services contained on or accessed through any such linked websites.
There is a VERY HIGH degree of RISK involved in trading and investing. Only invest what you can afford to lose.