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
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