GODREJ INDUSTRIES, Bullish above 321, CUP pattern

[v geetha]

Symbol : GODREJ INDUSTRIES
Direction : Long
Entry level : 321
Stop loss : 260
Target : 335
CUP pattern formed between SEP TO APR

[KRISHNA KUMAR MS]

The Trending Chart is similar to a Cup. But the entry at 321 with a TGT of 335 and SL of 260 means, risk of 61 per share and reward of 14.

Risk Reward ratio of 4 : 1 is not suitable for trading. Risk reward ratio should be 1 : 1, or 1 : > 1.5.

[ragunathan]

In cup pattern, the volume should be low at the time of cup pattern formation.

I thought the volume is not low there up to the period sep to apr.

If i told anything  wrong, consult with  Mr. murugan.

[EQSIS]

The Risk reward Ratio need to be at-least equal..

As per the attached image the risk is greater than returns…

The attached chart does not have the characteristic of CUP

Note: Occurrence of Cup Pattern is not as frequent as others….

[Balaji]

Dear Madam,

The important characteristics of CUP pattern is, Correlation co-efficient factor. The correlation coefficient factor should be low  during the mid of the pattern. Here in this case, it is above 0.60

[Author]

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