What is rounding bottom / Cup pattern? What are their conditions to determine the bullish trend?

[Supriya Rayabhagi]

A cup pattern is an accumulation pattern.

Conditions:

• The pattern should be visible as round bottomed cup.
• It takes months or even years to form(six months to one year).
• The volume should be low at the round bottom.
• The correlation between the market and the pattern should be very minimal.
• Create long position when the price starts to go up.

 

[Shiva]

The cup pattern is generally accumulation pattern and not very aggressive

Conditions :

1. The cup shape pattern should be visible probably the rounding bottom to take place

2. The stock movement should be very low, it is de-coupled with the market which is a sign of stock accumulation

3. No aggressive buying takes place , when it comes to the comfort zone of the buyer it is the base ie the solid rock bottom which is a cup pattern

4. Long position can be created when the prices started to go up.

 

[shivkant]

this pattern forms during yrs of time known as accumulation  of stock by stock by strong hands. for trend to be bullish the volume during bottom should be low and less market movement correlation once it pass previous top at the handle level we can make long position

[Hema]

Cup pattern is an accumulation pattern.

During the rounding bottom, the volume is expected to be low as possible.

The correlation between the market to the stock should be low during the MID of pattern.

[Vishal Rath]

Cup pattern is a price pattern in shape of cup which takes years to form.

Conditions: Volume should be low during the cup. Minimum 6 months.

[Author]

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