today we are going to be talking about XAUUSD
If we go on the monthly time frame we can clearly see a Bullish Cup and Handle Pattern almost close to breaking out to the up side.
what is the CUP AND HANDLE PATTERN and how can we use it to trade any market conditions?
Cup and Handle Pattern:
The cup and handle pattern is a bullish continuation pattern that consists of two parts, the cup and the handle. The cup typically takes shape as a pull back and subsequent rise, with the candlesticks in the center of the cup giving it the form of a rounded bottom. The handle is made up of downward-sloping price action that soon breaks out above the upper resistance line to indicate the continuation of the original bullish trend.
Cup and Handle Pattern Price Action:
1. Bullish Trending Market
2. Tests its previous highs
3. Buyers near the previous highs are likely to sell
4.Selling pressure causes a gentle pullback
5.Soon met with bullish activities
6.Resumed buying rounds bottom of the right side of the cup
7.Market once again tests its highs
8. Followed by another short pullback
9. Bullish investors push the market higher in their favor.
If we go on the monthly time frame we can clearly see a Bullish Cup and Handle Pattern almost close to breaking out to the up side.
what is the CUP AND HANDLE PATTERN and how can we use it to trade any market conditions?
Cup and Handle Pattern:
The cup and handle pattern is a bullish continuation pattern that consists of two parts, the cup and the handle. The cup typically takes shape as a pull back and subsequent rise, with the candlesticks in the center of the cup giving it the form of a rounded bottom. The handle is made up of downward-sloping price action that soon breaks out above the upper resistance line to indicate the continuation of the original bullish trend.
Cup and Handle Pattern Price Action:
1. Bullish Trending Market
2. Tests its previous highs
3. Buyers near the previous highs are likely to sell
4.Selling pressure causes a gentle pullback
5.Soon met with bullish activities
6.Resumed buying rounds bottom of the right side of the cup
7.Market once again tests its highs
8. Followed by another short pullback
9. Bullish investors push the market higher in their favor.