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#81

Yes, the handle usually forms the top half of the cup before price will move up to break through the previous resistance.


#82

Thanks bud

20 Characters


#83

So it usually means “third times a charm” for breaking the resistance? It’d be interesting to know some of the data behind many of these patterns. For instance, it’d be neat to be able to say something like “80% of the time a cup-and-handle forms, there is a resistance breakthrough on the third test” or something like that.

Is there any data like this available?


#84

There most definitely will be data on it’s success rate somewhere.
Out with my abilities but you can back test strategies On some trading platforms.:+1:


#85

These are great questions. I am still learning myself so I’d be curious to see what the more advanced TA people in the pub have to say.


#86

I figured there would be. If you have that data then it seems like it would naturally follow that you could just use fairly simple probability (essentially poker pot-odds) to guarantee wins over time?


#87

@Entropy have you any idea?


#88

Doesn’t give data on results but does explain when it should be more successful


#89

Yeah, someone showed that ICX had a cup formation a few days ago as well. This is a new one. Looks like there’s 3. Sure would have been nice to swing all of them top to bottom.


#90

Volume is so low for last 24hrs . More than 50% lower than normal on icx/eth for example on Binance


#91

The entire market volume is down a lot. Any have an idea as to why?


#92

Everyone is waiting for the king - BTC


#93

Remember with all patterns, a context is required to see if its a valid pattern. For example a head and shoulders topping/bottoming pattern are usually at the beginning/end of trends respectively. A cup and handle is usually a continuation pattern of a prior existing trend. What you are pointing out is the opposite. There is a down trend and you are saying this cup/handle is a reversal pattern, but those patterns dont represent that context. Make sense?

Just because a pattern exists does not mean it has to resolve in a way that is expected by prior examples. It has a higher probability of doing so but there is no certainty.

Anyway, my analysis is just range bound action. You might call it a cup and handle and another guy might call it something entirely different. Personally id just wait for a break of the swing high, and re-test of that high for an entry long. Also note: patterns on shorter time frames have much higher failure rates. Daily/weekly cup/handle patterns are far more robust.


#94

Thanks buddy, totally understand what your saying and thanks for the quick reply. :ok_hand:


#95

This site has been around forever which taught me a lot many moons ago. Always good for pattern searching

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle_continuation


#96

Cheers I’ll give it a look.
Out of interest is there any books on trading you’d say where a must read?


#97

See this thread for market psychology/books - Market/Trading psych - Some general guidelines


#98

The Intelligent Investor by Benjamin Graham. Amazing book.


#99

r00000ballssss! lkasjdf lkasjdf


#100

^ Warren buffet’s suggestion for best investing books.

I found it to be a tough read, although I’m not well versed with finance terminology.