Trading the Cup and Handle - Stock Chart Pattern

Cup and Handle Pattern:
-It is a continuation pattern.
-Discovered in 1988 by William O'Neil. I recommend his book How to Make Money in Stocks.
-You need a previous trend in order to have a continuation pattern.
-When the pattern trickles down the "handle" the volume will be slowly declining.
-Once it breaks the "handle," the volume needs to be very high.
-Remember that the "cup" of the pattern needs to be a "U" shape and not a "V" shape. A "V" shape is likely to be a Double Bottom or a Double Top.
-The "cup" is gradual, it is about a 1/3 retracement from the previous uptrend, and goes back down to re-calibrate itself.
-You want to enter or add to your position when it breaks the "handle."

#tradingcup #tradinghandle #stockchart #stockpattern

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All of the stocks mentioned in this video along with any other videos we have are opinions and not investment, financial or legal advice. These videos are for general education, information, and entertainment. Do your own due diligence and consult with a registered financial advisor before taking any position since everyone has a different risk tolerance.

[NoID]

Saw a Cup and Handle start to form on MX and waited for a breakout. It broke resistance and was supported by volume. Bought a modest position after breakout, hoping it will continue an upward trend. I'm a newbie and this is my first time trading based off actual analysis of charts. I appreciate your videos. Will look into your courses soon.

[TheAntsh]

Just a note - O'Neil did not discover the pattern, he just thoroughly researched and popularized it. First mention of CWH as far as I know dates back to 1963 William Jiler book on charts. I am sure the pattern was discovered long before that.

[shannonjennings]

AMC has a perfect cup an handle formed right now .

[hyperjack]

clear and simple explanation. Hope for more videos of chart pattern and maybe candlestick...thank you!

[wisdomkhan]

The best thing is that your write all what you teach in the desc too.

[AntonyLe]

you love using those markers, don't cha! haha! Thanks, very easy to understand.

[Chadm]

Thanks for the video! It would be great if you could show some real situations with these explinations. Maybe some that are perfect and some that are not perfect that you would still trade on. New to the game and real charts help out a lot! Subbed to your channel. Keep up the good work!

[magical]

It is also very smart to look at the MAs... because if it is under one of them and finding resistance on the handle. It's probably not going to play out. Great video though

[atcmadness]

Why didn't you discuss any targets after the cupline is broken with good volume??

[atiranedjah]

Hello Sasha, very useful and clear explanation. Thank you very much for sharing your knowledge. Best regards from Edinburgh.

[yky]

Great video, it seems good price has formed a cup and now is making the handle. 😃

[billd]

Good video. Would love to hear some of the thoughts behind the pattern.

[CreativiTimothy]

Could buy the second half of the cup or second half of the handle, or is that not advisable?

[sekarmarimuthu]

Hi thanks for the video, could you or anyone here please tell me that how many days/ week required to break the handle part in this cup and handle pattern?thanks in advance.

[lokalonez]

Thank you again for the video. Great Cup and Handle pattern shown on PLKD today hence the  reason i'm here. Still learning on the fly and loving it every step. Thanks for people like you!

[codybaumann]

When you talk about the volume are you referring to the volume available to buy or the volume that has already been purchased?

[thepsuser]

Sasha, great video, when looking at the stock, at what time frame should I look at the stock? Like 3 months, 1 year, 1 month?

[chesterg.]

Does the second peak before the handle have to match the same resistance as the first peak for it to be considered a cup and handle formation? Or is the u shaped cup formation more important?

[samueln]

I one time used this pattern exclusively to double my money on cryptos (looking for an up move after a strong down move)
So used it as reversal pattern

[micahchaney]

What if there's no prior uptrend, is it no longer a cup and handle pattern? AMRS 2016 (May - Oct). I'm thinking not, since you say the Cup and Handle pattern is a "continuation" pattern. So if it was major downtrending prior to this "cup" or bowl, what would you consider this pattern to be if anything, and how would you trade it?

Also, do you think it looks like a "V" or would you agree it's a "U" shape?

Thanks, great video.