Cup and Handle Pattern:
-It is a continuation pattern.
-Discovered in 1988 by William O’Neil. I recommend his book How to Make Money in Stocks.
-You need a previous trend in order to have a continuation pattern.
-When the pattern trickles down the “handle” the volume will be slowly declining.
-Once it breaks the “handle,” the volume needs to be very high.
-Remember that the “cup” of the pattern needs to be a “U” shape and not a “V” shape. A “V” shape is likely to be a Double Bottom or a Double Top.
-The “cup” is gradual, it is about a 1/3 retracement from the previous uptrend, and goes back down to re-calibrate itself.
-You want to enter or add to your position when it breaks the “handle.”
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Is the trend before the C&H pattern usually an uptrend ?
Could buy the second half of the cup or second half of the handle, or is that not advisable?
hello what timeframe are you looking at to discover these patterns? minutes, hrs, days, weeks, month? thanks great videos
I don’t see O’Neil’s book titled “how to trade stocks” on Amazon. Is that the correct title?
What volume indictator do you use?
The only think i didn't quite get is exactly where the volume needs to be high at. Is it at the bottom of the handle or is it when it breaks the trend line?
i have a big question about patterns in general. Do you use pattern in a daily chart or on a monthly chart? because there is maybe a cup and handle patterns in a day but in the month there is another one but bigger. When i look at a stock chart, I look at 1 month chart 1 day chart and 1 week chart. So where should I draw the cup and handle to see potential profit in the future?
Thank you!
I HAVE A Q
İs it normal if the right peak of the cup i mean the right peak of the u
is it problem if the right peak of the u higher than the left peak?
What will be the profit target in this pattern after we take buy position??
Is there opposite to pattern of cup handle to make sell positions as we use cup handle for buy possisions?
Hi Sasha – Thanks for another helpful video. I've been encountering what I think are failed cup and handle patterns. The failure , from what I understand, is taking place when the price is increasing from the bottom/end of the handle, but then reversing before it can pass the cup's neckline…so no breakout. From what I've observed, the price plummets after this, slightly beyond the depth of the cup. Can you recommend any material that discusses failures and their warning signs?
thank you for this channel! keep it up!
Just a note – O'Neil did not discover the pattern, he just thoroughly researched and popularized it. First mention of CWH as far as I know dates back to 1963 William Jiler book on charts. I am sure the pattern was discovered long before that.
Thank you for the well explained video
Is RIOT currently in a cup and handle by just looking at 3 months?
I AM DOING POSITIONAL TRADING IN INDIAN MARKET
Thnk u.
Plz add real examples in the end of every video.
Shoutout to Ethereum!
Can this pattern work in a inverse situation like a inverse head and shoulders?
Thanks for the video! It would be great if you could show some real situations with these explinations. Maybe some that are perfect and some that are not perfect that you would still trade on. New to the game and real charts help out a lot! Subbed to your channel. Keep up the good work!
Klaus
Over a day, month year? What?
Were would you buy in the cup and handle ?