What are the key characteristics of cup and handle chart pattern in the context of cryptocurrency trading?

1 answers

• komaeOct 13, 2023 · 2 years ago
  The cup and handle chart pattern is a popular technical analysis tool used in cryptocurrency trading. It is characterized by a rounded bottom (the cup) followed by a small consolidation period (the handle). This pattern suggests that the price may break out to new highs, indicating a potential bullish trend reversal. Traders often look for specific characteristics in the cup and handle pattern, such as a U-shaped cup, a handle that retraces no more than 50% of the cup's advance, and a breakout above the handle's resistance level. By recognizing these key characteristics, traders can make more informed decisions and potentially profit from the cup and handle pattern.
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