.The Image above depicts a classic cup and handle formation which is witnessed at ACC during 6 Dec 2016.
The cup is formed at the bottom as handles formed in the top half of the cup.Volume is decreased as price decline and remain lower than average in the base of the bowl.
Stop loss may be placed either below the handle or below the cuo depending on the trader’s risk tolerance and market volatility.In the above pattern the stop loss marked below the handle at 1382.5.The entry 1528.7 is marked just above the resistance 1509.3.
The torget is determined by measuring the distance between the bottom of the cup and the pattern’s breakout level,and extending that distance upward from the breakout.
