What are the steps to identify and confirm the presence of the Pola cup and handle pattern in a cryptocurrency chart?

1 answers

• Hess HvidOct 27, 2021 · 5 years ago
  Step 1: Look for a U-shaped cup formation on the cryptocurrency chart. The cup should have a rounded bottom and a smooth curve. Step 2: After the cup formation, identify a small downward price movement, forming a handle. The handle should be shorter in duration compared to the cup and have a downward slope. Step 3: Confirm the pattern by waiting for a breakout above the resistance level formed by the top of the cup. This breakout should be accompanied by a significant increase in trading volume. Step 4: Once the pattern is confirmed, consider entering a long position when the price breaks above the resistance level. Set a stop-loss order below the handle's low to manage risk. Remember to always do your own research and consult with a financial advisor before making any investment decisions. Happy trading!
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