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The Cup pattern indicates the gradual accumulation of stocks by strong hands, which happens at longer duration.
Condition for bullish cup pattern:
Cup shape should be visible with line charts with longer duration.
Correlation with the market should be low. When the market goes up the stock will not go up when the market goes down the volume will not go down
During the rounding bottom the volume should be low.
When the cup is filling create a long position.
1. Cup patterns are generally powerful if it takes long time to construct.
2. Druing the rounding bottom, the volume is expected to be low as possible.
3. The correlation between the market to the stock should be low during the mid of the pattern.
4. Do not buy when it is at the rounding bottom, called dead snake state.
5. Long position can be considered when the price goes above after forming a rounding bottom.
The Cup pattern indicates the gradual accumulation of stocks by strong hands where in the inverted cup is a distribution pattern.
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>the gradual accumulation of stocks forms the cup pattern.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>conditions:</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>it takes long time to form a cup base</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>volume must be as low as possible during forming the cup.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>the correlation between the market and the stock should be low during mid pattern</p>1. Cup patterns are generally powerful if it takes long time to construct.
2. Druing the rounding bottom, the volume is expected to be low as possible.
3. The correlation between the market to the stock should be low during the mid of the pattern.
4. Do not buy when it is at the rounding bottom, called dead snake state.
5. Long position can be considered when the price goes above after forming a rounding bottom.
The Cup pattern indicates the gradual accumulation of stocks by strong hands where in the inverted cup is a distribution pattern.
Cup pattern is an accumulation pattern through a few months or even years.
1. The pattern should be visible as a round bottomed cup.
2. Must take months or even years to form.
3. The volume should be low at the round bottom.
4. The market co-relation should be minimum.
5. can assume long position when the price starts to go up.
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