- This topic has 265 replies, 263 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
Rounding bottom/Cup pattern is an accumulation pattern.
Conditions:
1.It takes a very long time for the cup to be formed.
2.It forms a rounding bottom shape with very less amount of volumes during the accumulation.
3.The correlation between the market and the pattern should be very minimal i.e whatever movement in the market be it does not affect the 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.
It looks like a cup with a round bottom
The volume should be gradual during the rounding bottom
It takes years to form a rounding pattern
This is gradual accumulation of stocks
Long position should be created when it get passes the previous top
A cup and handle pattern resembles the shape of a tea cup on a chart. This is a pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same. There should be less volume at the bottom of the cup and a buy order should be placed once breaks the price at the handle.
- You must be logged in to reply to this topic.
