Checked for below conditions to confirm cup pattern:
- Took more than 3 months to form cup pattern
-
Lackluster volume is observed
-
Rounding bottom
Trade plan:
Major Support: 134
Resistance : 296
Entry point : go long above 296
Stop loss : 134
Target : 458
0
Hi sir,
Good try…… Volume is a key indicator for identifying and validating the cup pattern, dropping off as the pattern reaches the bottom and volume should be low during the consolidation period (rounding bottom), then increasing the volume as the new uptrend is established. And the minimum duration for Cup pattern is 1-1.5 years.