BSE LTDLong
C&H formation
BSE c&H formation
Cup and Handle Pattern Overview
1. Cup Formation:
A rounded bottom resembling a "U" shape.
Indicates a period of consolidation followed by a recovery.
2. Handle Formation:
A short-term consolidation or pullback resembling a downward-sloping flag or channel.
Prepares for the breakout.
3. Breakout:
Occurs when the price breaks above the resistance level formed at the top of the cup.
Typically followed by high volume.
Key Components to Look For
1. Cup Depth: The cup should not be excessively deep; a shallow retracement is ideal.
2. Handle Length: The handle should not retrace more than 50% of the cup's height.
3. Volume: Decreasing volume during the handle phase, followed by a spike on breakout.
4. Timeframe: Typically observed on daily or weekly charts.
Example Analysis
1. Stock: Let’s take TCS as an example (or any BSE stock).
2. Timeframe: Daily chart.
3. Steps:
Identify a rounded consolidation phase forming the "Cup."
Look for a small retracement (forming the "Handle") near the cup's resistance.
Watch for breakout with volume above the resistance line.
Targets and Stop-Loss
Target: Measure the height of the cup (from the bottom to resistance) and add it to the breakout point.
Stop-Loss: Place it slightly below the handle's lowest point.
Cup and Handle Pattern Overview
1. Cup Formation:
A rounded bottom resembling a "U" shape.
Indicates a period of consolidation followed by a recovery.
2. Handle Formation:
A short-term consolidation or pullback resembling a downward-sloping flag or channel.
Prepares for the breakout.
3. Breakout:
Occurs when the price breaks above the resistance level formed at the top of the cup.
Typically followed by high volume.
Key Components to Look For
1. Cup Depth: The cup should not be excessively deep; a shallow retracement is ideal.
2. Handle Length: The handle should not retrace more than 50% of the cup's height.
3. Volume: Decreasing volume during the handle phase, followed by a spike on breakout.
4. Timeframe: Typically observed on daily or weekly charts.
Example Analysis
1. Stock: Let’s take TCS as an example (or any BSE stock).
2. Timeframe: Daily chart.
3. Steps:
Identify a rounded consolidation phase forming the "Cup."
Look for a small retracement (forming the "Handle") near the cup's resistance.
Watch for breakout with volume above the resistance line.
Targets and Stop-Loss
Target: Measure the height of the cup (from the bottom to resistance) and add it to the breakout point.
Stop-Loss: Place it slightly below the handle's lowest point.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.