Cup and handle pattern.
Ye chart pattern tb banta hai jb kisi pair ya commodity ki price cup like shape ki tarha move karti hai. Cup and handle chart pattern both small time frame ma like one minute ma and larger time frame like daily, monthly frame ma equally use ki ja sakti hai. Ye pattern form hota hai jb price down ward move karti hai or phr market wapas cup shape ka bottom curve bana kar wapas up ward ma move kar k stable state ya previous position tak ponch jati hai yani ik cup ki shape banati hai jesa k pic ma dakha ja sakta hai. Es k bad market side ways move karna start ho jati hai or ye shape handle ki tarha banti hai. Ye handle triangle ki shape ma b bana sakta hai.
Ye handle wala pattern mustly cup waly pattern sy small hona chahe. Ye handle wali shape cup shape k half sy nechy ni jana chahe. Agr ye handle ki shape cup shape k upper side par 1/3 ho to ye ideal cup and handle shape hoti hai.
Entering a cup and handle shape.
Cup and handle trade ma enter hony k lae handle k banany ka wait karna chahe. Handle aksar side way ya decending channel ki form ma ban jata hai. So hamy buy ki trade open karni chahe agr price es channel k uper sy break kary. Jb price handle sy bhar move kar jae to ye pattern mukamal tasawar hota hai or market ki price up trend ma ja sakti hai. But es ka matlab ye ni hai k price ab up trend ma he jaye gi. Kahe bar asa hota hai k market tora up jati hai or phr sy fall kar jati hai es lae hamy stop loss ko lazmi set karna chahe.
Seting a Stop Loss.
Stop loss sy ham trade sy out ho jaty hain or hamy zayada loss ni hota or account wash hony sy bach jata hai. Stop loss sy ham trade k risk ko khatam kar sakty hai. So stop loss set karny ka best point ye hai k esko handle k nechy set kiya jae. Handle hamesa cup k upper half k sath hona chahe so stop loss ka point cup k uper third hesay par hona chahe. Es tarha stop loss entry point k kareeb ho ga or ham big loss k risk sy bach jayn gy.
Picking a target or profitable exit.
Cup and handle shape ma profit point ya take point ko hasil karny ka method ye hai k jetni cup ki height hoti hai es ma break out point ki height ko add kiya jae or to point hasil ho wo hamara profit able exit ho sakta hai. Kuch cases ma cup ki right side left side sy choti hoti hai so asi sorat ma hamy small height ko consider karna chahe.
Considerations.
Cup pattern ka bottom round shape hona chahe jis ka matlab hai k ye market ki support hai or market es sy down ni jae gi. Secondly agr market ka trend up ha to cup or handle middle of trend ma bany ga. Thirdly agr cup or handle pattern down trend k bad bany to ye reversal trend ka signal deta hai.
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