Cup and Handle Pattern in Forex

Cup and Handle or Saucer and Handle pattern is among the strongest patterns I‘ve ever seen. This pattern doesn’t forms upon the charts too often, because unlike another patterns like triangles, head and shoulders, rectangles and… it requires a very long time to form. However, when formed It‘s so reliable and strong and generates strong and profitable trade setups.

This patterns looks exactly as it‘s named. It‘s as a cup and it is handle when you percieve it coming from the side.

Click the images to discover them in full size :

Cup and Handle Pattern
How Will the Cup and Handle Pattern Form?

Please refer towards the below screenshot while reading this article :

1. A to B : Cup and handle pattern starts forming once the market starts going down strongly. The down movement forms the left side from the cup.

2. B to C : Following a while of owning a strong bearish market, bears becomes exhausted and thus the down movement becomes slower, and we‘ll possess a sideways market for any short time period. This sideways movement forms the bottom from the cup.

3. C to D : Probably the bulls eliminate the control and also the market starts going up strongly, like when it started going down strongly at the start of the formation from the cup. This strong up movement forms the ideal side from the cup.

4. D to E : Following a while of going up, the bulls become exhausted too and thus the marketplace stops going up strongly and forms a little sideways section which happens to be the cup handle. This part is vital since it is where we will predict subsequent direction from the market. I will be able to tell you the way.
Cup and Handle Pattern Formation

Cup and Handle Pattern Formation