Thread by @TechnoFunda6

Thread 🧵explaining #CupHandle Pattern used in #TechnicalAnalysis
(Must read for #TA learners)

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@rohanshah619 @Mitesh_Engr
@PAlearner @Puretechnicals9

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1⃣

Cup and Handle is a #bullish continuation chart pattern. It is formed by two rounded troughs, the first being deeper and wider than the second.

The first trough is known as #cup while second trough is known as #handle.

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2⃣

The high points of the cup and the handle are aligned on the same horizontal #resistance line known as the #neckline of the cup with handle pattern.

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3⃣

#CupandHandle pattern is said to be complete only when breakout happens on continuation side, i.e., price breaks #neckline on upside.

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4⃣

Potential target for the #pattern is calculated projecting height of Cup above breakout point as shown in image.

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5⃣

It is advisable to wait for a pullback after breakout before considering opening a long position (when buying) after the formation of a cup with handle pattern.

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6⃣

For real life example of #CupHandlePattern on Chart refer our case study 11

https://twitter.com/TechnoFunda6/status/1411365608411725829

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