Bhavishya - Cup and Handle
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A cup and handle chart is a bullish continuation pattern indicating a pause in an upward trend, typically characterized by a cup shape followed by a handle formed through downward or sideways price movement. Once the price breaks above resistance levels in the handle, the upward trend is expected to resume. This pattern can take several months to over a year to form.
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Bhavishya - Cup and Handle
- 2. A cup and handle chart is a bullish continuation pattern in which the upward trend has paused but will continue in an upward direction once the pattern is confirmed.
- 3. Figure 2 : Cup with handle
- 4. As you can see in Figure 2, this price pattern forms what looks like a cup, which is preceded by an upward trend.
- 5. The handle follows the cup formation and is formed by a generally downward/sideways movement in the security's price.
- 6. Once the price movement pushes above the resistance lines formed in the handle, the upward trend can continue.
- 7. There is a wide ranging time frame for this type of pattern, with the span ranging from several months to more than a year.