What Is a Cup and Handle Pattern In The Forex Market?- jvanfx

What Is a Cup and Handle Pattern In The Forex Market?

FX BOSS COACHING - ADVANCED INSTITUTIONAL TRADER

jvanfx

Cup and Handle pattern is a continuation pattern and to trade it, you need to follow these steps:

- Identify a prior uptrend/downtrend on the currency pair you want to trade. You can use price action techniques or technical tools like Trend Line Fibonacci to confirm the trend direction.

- Look for a rounded bottom/top that resembles a cup or a bowl, followed by a small pullback that forms the handle. The handle should be downward/upward sloping/ascending but not too deep/high or too long/short, and it should form in the top/bottom half of the cup pattern.

- Put a trendline on the short term up/down trend, and wait for the market to make a short term up/down trend in the opposite direction of the short term up/down trend and brakes the up/down trendline before you take a long/short position.

- Stop loss gose on the first high/low that makes the short term up/down ternd and take profit is going to be 1/2 risk reward .

See example above:

Last updated: 11/18/2023 00:04

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