Cup and Handle pattern

I) Cup and Handle Formation

Also a reversal pattern, but more obvious at the bottom rather than at the top
Basically looks like a coffee cup and a handle
There is a basing stage, accumulation phase (cup), then a breakout, followed by a pullback, forming what looks like a handle
Breaking out of the top of the cup is confirmation of a change in trend
C&H pattern
Cup & Handle

Cup & Handle

Few criteria
The cup should be more rounded than a “V”
The handle should be in the top part of the cup, not too deep
Cup pattern should take at least 7weeks to form
Volumes should contract in the handle and expand on b/out
Trading-Wise -> ENTRY
From a trade perspective, the buy is the area where the top of the cup is taken out
TARGET
Measure the distance to the low of the cup.Add that to the breakout area
STOP
At the low of the handle

I.a) Reverse Cup and Handle

Occurs at the top, rest all reverse of the above
LIVE EXAMPLE: CUP and HANDLE PATTERN:
Stock:     DCM
Pattern confirmed on 23rd March @ 83 CMP: 93 TARGET: 140+ Today I am posting a Live example of This pattern. The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. It was developed by William O’Neil. Now trading in 180’s
BEML cup and handle formation
Cup and handle

 Contd. to Head & Shoulders pattern.

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