Cup and handle chart pattern

A cup-and-handle pattern resembles the shape of a tea cup on a chart. The cup with handle is a variation of the double floor in the first valley is very large and the second is smaller and less deep, forming a figure resembling the profile of a cup and a corresponding handle. They are formations that indicate a change in the trend, usually primary. The figure is not complete until the curve of contributions, after forming the handle is over the rim of the cup.

The figure can be divided into two phases: The formation of the cup and handle formation.

The first phase or the formation of the cup, characterized by falling prices of the curve with a small volume until it reaches the bottom of the figure, and then comes the upward movement with a progressive increase in trading volume, until reached the edge of the cup.

Cup and handle chart patterns seem to be reliable pattern to trade. Here are some examples of how I found these pattens and made money. In the second phase forms the handle, with a slight fall in stock and again with low volume. At this point investors begin to realize the upside potential of these titles, and begin to press their purchase orders until the curve returns of contributions to meet the resistance line formed by the edge of the cup. At this stage the volume is greatly increased, as sellers take full role to the increase in purchase orders. Finally, if the money is pressing, the paper runs out and a strong volume breaks the resistance line formed by the edge of the cup, and the figure is complete.