The CUP and HANDLE pattern occurs after a bullish trend. The cup forms a round bottom and the price comes back to the previous peak. Then, the HANDLE zone is formed with a small descending period. It is expected that, after this pattern, a strong UPWARD movement will come.
Cup and handle is still in place now without a breakout. On the monthly, I see a bearing divergence with the RSI. I am looking for some insight regarding cup and handle patterns. For a cup and handle pattern, the RSI usually shows a bearing divergence. How can the cup and handle pattern be called a bullish indicator, nonetheless
MiguelFTCurado
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@jerome1212, Thanks for sharing. It will be only bullish after breaking the "handle top" arround 500. I believe that day will came, so, I am accumulating arround 160.
Nice content... i have some ideas on Cup & Handle pattern...
TraderT33
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Beauty!
What would be the target here? The cup is about +1000% from bottom to top. So from the bottom of the handle (180) + 1000% would be 1800? Seems so crazy, am I mistaken here?
MiguelFTCurado
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@TraderT33 Hi! Thanks for your interest! I will try share some ideas that might help. 1. In this case we can find a target not in %. So, bottom to pick of the cup is 500-40=460. Now we can had this value to the TOP of the Handle. So, 500+460 = 960, that is a more conservative target. 2. Although 1000% is a bit crasy, we must have in mind that XMR Has already done that before with less people and institutions involved (from 5 to 500, for exemple). 3. BTC has done 3x from last peak(20k to 60k) and XMR 'just' match last peak(500). 4. This pattern 'only' works from 65% to 70% of the time (which is excelent) 5. You can be taking profits on the way up Hope it helped! Together we are stronger ! Good Luck!
TraderT33
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@MiguelFTCurado, Thanks for your input, very much appreciated! Let's see where we go, impending vote in the senate... crazy times