There are two variations of cup and handle chart patterns in forex based on their potential. There is the bullish cup with handle and the bearish inverted cup with handle.
the cup and handle pattern is a continuation pattern that occurs after a preceding bullish or bearish trend. This formation provides traders with some distinctive features.
the cup and handle pattern is a bullish continuation pattern and momentum buy signal as it breaks out of the handle in the formation. It was originally intended to be used with high growth stocks within the can slim.
the cup and handle pattern is formed when prices tend to bottom out, forming a gradual decline and then a smooth rally higher. Upon reaching the previous support level, prices tend to break the support turned resistance only to fall back a small distance, forming a handle.
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