#BTC (Cup and handle pattern)

One of the models commonly found in super stocks, which brings quite good profits, and is favored by many investors is the cup-with-handle model. So what is the cup-with-handle model, its characteristics and how to trade in stocks?

1. What is the cup with handle model?

Cup and handle pattern is a price pattern in stocks, shaped like a cup with handles, the body is a “U” and the handle/handle is a “V” shape. U” is smaller.

2. Components of the cup-with-handle model

The model will consist of two main parts: the cup and the strap or handle. The price line drops in a large U-shape to form the cup, followed by a smaller decline forming the handle.

Cup part: The stock price after a series of declines begins to show signs of bottoming and goes up to form a cup shape, either a U or a V;

The handle: When the stock price rises to the top, many investors will sell to make a profit or break even. The selling force causes the stock price to gradually decrease, forming an adjustment zone. When the supply runs out and the buyers prevail, the stock price begins to recover, increasing beyond the handle. From here, the cup and handle model is complete.

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