Educational Section 📢
📊 Cup and Handle Pattern: A Strong Signal in Technical Analysis 📊
The ☕ Cup and Handle model (Cup & Handle) 📈 is one of the most prominent bullish patterns in technical analysis, indicating the continuation of an upward trend after a period of correction. This pattern is characterized by a gradual decline forming a cup followed by a slight rise creating the handle, before the price breaks through the resistance level to achieve the expected price targets 🎯.
Conversely, the 🔻 Inverse Cup and Handle model (Inverse Cup & Handle) 📉 appears as a bearish signal, suggesting the likelihood of continuing a downward trend after a period of volatility, making it an ideal opportunity for sellers to enter upon the break and set a stop-loss above the handle 🚨.
✅ Trading Strategy:
📌 Entry: Upon breaking the resistance level (in the bullish model) or breaking the support (in the bearish model).
🚀 Target: Equals the height of the cup in the bullish direction, or its decline in the bearish direction.
⚠️ Stop: Below the handle in the bullish model, and above it in the bearish model.
📢 The success of this strategy relies on confirming the break with strong trading volume, which increases the reliability of the pattern and enhances the chances of success! 📈🔥
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