Group: Trend Continuation
Definition:
A long-term accumulation pattern: a rounded bottom (cup) followed by a short correction (handle), ending with an upside breakout.
Key Characteristics:
- Rounded bottom
- Small correction forming the handle
- Breakout above resistance
How to Trade:
Buy on the breakout above the handle. Place the stop-loss below it. The profit target equals the depth of the cup.
Common Mistakes:
- Entering too early
- Ignoring volume confirmation
Conclusion:
One of the most favored patterns among investors and algorithms for long-term bullish moves.
