Trading the Cup and Handle - Stock Chart Pattern

Рет қаралды 183,357

10 жыл бұрын

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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Пікірлер: 164

@shannonjennings7303 3 жыл бұрын

AMC has a perfect cup an handle formed right now .

@HelloooCharlie 3 жыл бұрын

That’s why I’m here 🚀

@KishanK1022 3 жыл бұрын

🚫💀😸

@shannonjennings7303 3 жыл бұрын

@@KishanK1022 Not a dead cat ,not a dead cat ,not a dead cat !!!! Lol

@fps8786 3 жыл бұрын

@@shannonjennings7303 lol

@NoID2143 3 жыл бұрын

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.

@daprince001x5 Жыл бұрын

How are u doing now?

@coinsilog-newstricksguides905 6 жыл бұрын

thank you for this channel! keep it up!

@AntonyLe55 3 жыл бұрын

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

@zainginsburg5254 6 жыл бұрын

Thank you for the well explained video

@lokalonez11 9 жыл бұрын

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!

@kamallalchandani8274 9 жыл бұрын

plz check sun pharma ,chartlink....it has formed cup and saucer pattern ....

@billd6069 3 жыл бұрын

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

@Mangeurdemouton 5 жыл бұрын

i have a big question about patterns in general. Do you use pattern in a daily chart or on a monthly chart? because there is maybe a cup and handle patterns in a day but in the month there is another one but bigger. When i look at a stock chart, I look at 1 month chart 1 day chart and 1 week chart. So where should I draw the cup and handle to see potential profit in the future? Thank you!

@88theps3user 7 жыл бұрын

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.791 3 жыл бұрын

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?

@sekarmarimuthu3913 4 жыл бұрын

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.

@xchangeking405 2 жыл бұрын

Here in 2022... great content!

@tradersflyofficial 2 жыл бұрын

Check out my other videos.

@KC-zv9dj 5 жыл бұрын

hello what timeframe are you looking at to discover these patterns? minutes, hrs, days, weeks, month? thanks great videos

@hyperjack23 2 жыл бұрын

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

@tradersflyofficial 2 жыл бұрын

Yes we will do that more often. Join the live stream tonight and we can discuss more charts kzfaq.info/get/bejne/d9t_nb1i25zenGQ.html

@codybaumann1 8 жыл бұрын

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

@atiranedjah5359 3 жыл бұрын

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

@tradersflyofficial 3 жыл бұрын

Excellent! Thank you so much for watching

@pakjanggot9879 10 жыл бұрын

Thanks for sharing..

@sudarshanlade7118 6 жыл бұрын

Is there opposite to pattern of cup handle to make sell positions as we use cup handle for buy possisions?

@magical8013 3 жыл бұрын

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

@stamatouvable 10 жыл бұрын

very good explanation!!

@micahchaney1904 7 жыл бұрын

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.

@dh735 6 жыл бұрын

Hi Sasha - Thanks for another helpful video. I've been encountering what I think are failed cup and handle patterns. The failure , from what I understand, is taking place when the price is increasing from the bottom/end of the handle, but then reversing before it can pass the cup's neckline...so no breakout. From what I've observed, the price plummets after this, slightly beyond the depth of the cup. Can you recommend any material that discusses failures and their warning signs?

@dh735 6 жыл бұрын

The best thing I've found is Bulkowski's chart pattern encyclopedia and it's Cup and Handle "Focus on Failures" subsection. It only covers failures that happen after a small breakout, not failed handles and the aftermath. :)

@Chad711m 7 жыл бұрын

Can this pattern work in a inverse situation like a inverse head and shoulders?

@TheAntsh 6 жыл бұрын

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.

@musasaas 5 жыл бұрын

I HAVE A Q İs it normal if the right peak of the cup i mean the right peak of the u is it problem if the right peak of the u higher than the left peak?

@Paramore2841 9 жыл бұрын

Hi thanks for the vid, quick question: What do you mean about the volume increase? Is that the volume of shares in your portfolio or do you mean the company's volume of shares issued is increasing?

@diegoa.r.delfino237 5 жыл бұрын

He means the trading volume

@Chad711m 7 жыл бұрын

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!

@eddyvideostar 5 жыл бұрын

To Chad 711: This is a very good comment with wonderful questions. Well done.

@eddyvideostar 2 жыл бұрын

Dear Chad: This is not a game: Harken back to 0:05 seconds -- and find the real truth.

@SuperDagod1 4 жыл бұрын

About what % down does the handle drop from the high before moving higher.

@samueln300 4 жыл бұрын

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

@antonshroyer5674 2 жыл бұрын

Continuation is generally only slightly more likely than a reversal. One needs to use all their indicators available to trade patterns .

@CreativiTimothy 5 жыл бұрын

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

@yky621 2 жыл бұрын

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

@tradersflyofficial 2 жыл бұрын

Thanks for watching

@wisdomkhan 2 жыл бұрын

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

@tradersflyofficial 2 жыл бұрын

Excellent! Thanks for stopping by and watching

@alleem4200 7 жыл бұрын

could you take a look at stock symbol scty. It looks to me like a cup and handle on a daily chart and also a trple bottom on a weekly chart.

@NunaDeez 3 жыл бұрын

Thank you so much

@sudarshanlade7118 6 жыл бұрын

What will be the profit target in this pattern after we take buy position??

@moledong9390 3 жыл бұрын

That was a great explanation of a graph. But pointless if seeking Trading Rules for implementation. I see this pattern daily (or double top) on high volume movers, the handle doesn't always continue to go up depending on what time of the Day. I guess the great take away from this Video, is this Pan and handle is dependent on VOLUME more so than any factors. This is more for the day Traders (gamblers) ... remember, All stocks ultimate worse case scenerio is " O" cost valuation. So remember, this is a gamble.

@GurmeetSingh-fw2zi 4 жыл бұрын

Don't you think the point form where handle started forming should be little bit high . i.e. The starting point of the cup should be lower than finishing point of Cup ?

@eddiesu2 8 жыл бұрын

i believe LC have a cup and handle pattern right now.

@josemorelos3694 7 жыл бұрын

Were would you buy in the cup and handle ?

@AlanTrades 8 жыл бұрын

Is this cup base off a day, month, 3month or 6 month ?

@atcmadness4351 3 жыл бұрын

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

@donajor8 4 жыл бұрын

Sasha can I share this chart pattern that been forming since the late 80s and it’s links to Many global events including present day. It’s text book perfect. There’s a flag on the daily with 13,000 tic pole that connects and make to the weekly cup. If we can go over this for the best entry pre breakout I’m sure this position will last for years

@youcan5863 2 жыл бұрын

Thank you 🙏

@tradersflyofficial 2 жыл бұрын

Welcome! Thanks for watching....

@kakashi99908 2 жыл бұрын

I don't get the need of the cup though I mean isn't it really the handle which is AKA a flag? Is the cup needed to find the flag?

@arnie1914 4 жыл бұрын

Take a look at AMD now May 2nd 2020. The curve is just leaving the handle.

@RockTheCage55 5 жыл бұрын

The only think i didn't quite get is exactly where the volume needs to be high at. Is it at the bottom of the handle or is it when it breaks the trend line?

@tradersflyofficial 5 жыл бұрын

Think of it like this.... If you want the staff to go up you are more volume as the stock is moving higher. If you want the stock to go down you want more volume as the stock is moving lower

@RFK_71 2 жыл бұрын

Great info…✌️

@tradersflyofficial 2 жыл бұрын

Glad it was helpful!

@osityan 4 жыл бұрын

What time frames are you looking at when looking for these patterns?

@tradersflyofficial 4 жыл бұрын

Typically weekly charts...

@KaranAnand-lj6dd Ай бұрын

Can the handle touch the bottom of the cup?

@unknownb3096 3 жыл бұрын

SURF looks like it’s developed this pattern. Thank you for this video, it’s confirmed my theory on this stock

@tradersflyofficial 3 жыл бұрын

You are welcome. Thanks for stopping by and watching the video

@heavyhowl6365 3 жыл бұрын

Not really seeing one with SURF tbh. Seems like CIDM might be a better example

@bipulbipul6315 9 жыл бұрын

Good video for beginners like me ,but sir it could be more valuable if u tell us about 1. TIME PERIODS of this total formation and 2. about VOLUME ,not only handle and breakout level but during whole formation... One more question if any stock formed C & H formation during 2 years ... can i consider it a valid C & H formation??? thanks :)

@bipulbipul6315 9 жыл бұрын

actually i read Thomas N. Bulkowski's description about that Cup formation have to 7 - 65 weeks and its depth not more than 33% from the prior uptrend %..n handle should have to form at least 1 - 2 week...thats y i asked that question...any way u r doing great job sir...ur videos r very helpful for us... wonderful presentation ...keep it up ...thanks

@arefaldughaim1186 9 жыл бұрын

thanks for sharing. what about the price target for this chart pattern?

@diegoa.r.delfino237 5 жыл бұрын

It's the height of the cup

@SuperDagod1 8 жыл бұрын

So what do you think will happen with the silver price cup and handle?

@SuperDagod1 8 жыл бұрын

Silver in general is on the handle of the cup and handle pattern. In fact the price is moving up the right side of the handle.

@blueseventynine 2 жыл бұрын

Thanks heaps

@tradersflyofficial 2 жыл бұрын

You are welcome.

@vinayvini2352 2 жыл бұрын

What time frame we need to apply the particular charts

@tradersflyofficial 2 жыл бұрын

Can be daily, weekly or monthly - but daily or smaller time frames are less reliable.

@jcarlos239 10 жыл бұрын

can this patter happen on a single day trade or over the long run?

@jcarlos239 10 жыл бұрын

***** thank you! very helpful

@mightygnarly 4 жыл бұрын

Is bitcoin in a 2year cup and handle pattern right now

@raybosflorida4928 9 жыл бұрын

u da man,,thx

@EroticOnion23 8 жыл бұрын

+Sasha Evdakov (TradersFly) Hi, I've read O'Neal's book, worth it's weight in Benjamins.But, how do you tell the difference between a C&H vs a weak, non-undercutting double bottom?? The handle part of C&H looks like a weak 2nd part of the double bottom...Are double bottoms just more 'v' shaped? Thanks!

@kkirito9709 4 жыл бұрын

How do you identify if it is a reversal or continuation pattern?

@barrerastowing2791 2 жыл бұрын

I hope it will help you, you really need some kind of indicators like sma20 or sma50 let's say, when you find the chart, price is above 20 but price makes a pull back down it dost have to bee long pull back down as long price just touch smà 50 , it confirm that is continuation and is not a reversal

@maruzdumucruz1116 3 жыл бұрын

nice derect to the point

@tradersflyofficial 3 жыл бұрын

Thank you so much. I'm glad you enjoyed the video

@vahagnaldzhyan4811 7 жыл бұрын

Could you look at the stock CLVS please. I have been watching it for a month now and I am pretty sure it is a cup and handle pattern. Can you check it out and let me know please?

@vahagnaldzhyan4811 7 жыл бұрын

Why wouldn't you say it's a cup and handle? It has been trading at a low volume during its lowest points. It seems that all of the patterns with CLVS match up with those seen in a cup and handle pattern.

@johnpalma7265 8 жыл бұрын

nice overview, nice explanation,nice art work,you should have been an artist. Thanks!

@yankeeownz9980 Жыл бұрын

DOGEUSD Cup and handle happening in real time on the daily chart along with a golden cross

@timothy1949 2 жыл бұрын

what if handle is above the neckline

@donk3893 8 жыл бұрын

price of gold is a perfect example right now...over 1 year chart

@Me-nk5ic 3 жыл бұрын

Did u quit trading?

@reneamaton7498 7 жыл бұрын

could it work in a 4h chart or in a 1hr chart?

@reneamaton7498 7 жыл бұрын

Thanks, do you think an inverse cup with handle will work as well I mean for shorting?

@13loodLust 3 жыл бұрын

GME gonna moon then. Got it.

@seshgalaga5482 3 жыл бұрын

The music🔥 🎶

@tradersflyofficial 3 жыл бұрын

Thank you for watching

@whatusayingangsta3642 2 жыл бұрын

Is PLBY doing this right now?

@tradersflyofficial 2 жыл бұрын

It could be but not as clean. You would have to wait for the highs in may

@quantomic1106 8 жыл бұрын

Looks like IBB is forming this pattern right now.

@eyob8969 3 жыл бұрын

here bcs of GME! to the mooooooon

@ivinwong4095 3 жыл бұрын

Same noticing a pattern here

@iguy7034 5 жыл бұрын

I don’t see O’Neil’s book titled “how to trade stocks” on Amazon. Is that the correct title?

@shaishabchowdhury 5 жыл бұрын

The title is how to make money in stocks : A winning system in good times or bad

@CritterStyle 8 жыл бұрын

Forward motion make you sway like the ocean. Cup pattern is a powerful potion. What's the commotion, yo I'm not joking around.

@eddyvideostar 5 жыл бұрын

To Marcus Hampton: Maybe you could go to the ocean and see those cups swaying and jiggling around.

@carlawoodhead7027 3 жыл бұрын

To the moon!!! 🚀🚀🚀

@vrubelvrubel6293 3 жыл бұрын

What happens if the handle is to the left?

@guilhermemarinho2913 3 жыл бұрын

Not a pattern

@cuytenboilies9428 2 жыл бұрын

Is Bitcoin now in a cup and handle on the weekly?

@tradersflyofficial 2 жыл бұрын

Depends on the time frame you're looking at or the duration

@pothochari3639 7 жыл бұрын

Thnk u. Plz add real examples in the end of every video.

@zanderbam6546 9 жыл бұрын

Bitcoin.. bitcoinwisdom, 6h.. whats your opinion?

@johnpalma7265 8 жыл бұрын

What do u want 4 nothing?

@hollowrun 6 жыл бұрын

if you would of invested a lot 2 years ago you would be rich right now

@peterm1767 2 жыл бұрын

$MMMM has the perfect cup and handle right now

@phildurre9492 3 жыл бұрын

cup = Gold from 2011 to 2020 handle ongoing, breakout, lets see

@vaijayantimhalsekar735 6 жыл бұрын

I AM DOING POSITIONAL TRADING IN INDIAN MARKET

@patrickkwon2204 3 жыл бұрын

Current GME Trend?

@Boogiehill 5 жыл бұрын

What volume indictator do you use?

@tradersflyofficial 5 жыл бұрын

Just volume and the 20 day moving average on the volume since there are 20 trading days in a month

@rav6274 4 жыл бұрын

Is the trend before the C&H pattern usually an uptrend ?

@bossywossy111 2 жыл бұрын

A double bottom is basically the same as a cup pattern is it not

@tradersflyofficial 2 жыл бұрын

No not really. Cup is rounded.

@FrizzelFry 3 жыл бұрын

Something for all the tea lovers $GLD

@Lordryan2006 3 жыл бұрын

I would enjoy this better if it were a cartoon

@guilhermemarinho2913 3 жыл бұрын

And what about the target?

@tradersflyofficial 3 жыл бұрын

Distance of the cup from the bottom to the top.

@garethwatts18 3 жыл бұрын

Here for xrp

@eddyvideostar 2 жыл бұрын

At 0.05 seconds: Read, glean, be keen, and even-keeled. Pretend that *all* trading videos have this type of disclaimer.

@tradersflyofficial 2 жыл бұрын

Absolutely. He always have to mind your own risk and understand the risks you're taking on. Every video should have this disclaimer and we try to put it on as often as possible.

@ohmarvin9086 4 жыл бұрын

You didn’t explain how to trade it.

@tabu123 3 жыл бұрын

Silver all time chart is cup and handle porn in the making

@jayzee848 9 жыл бұрын

I thought this was a rice bowl pattern??

@jayzee848 9 жыл бұрын

***** you are right like i have a new name basically for english and people easy to understand i have been learning candles and meanings 8 hours a night for 6 weeks just meanings i have came up with meanings as in this like any other tade things change the names i have people can relate to which means a easy understanding and easier to remember by the way i made 257 on xauusd today but butt i cant lap it up i lost 54 pound also on xauusd