Lets straight into 4h chart , Dot is forming cup and handle pattern . It is crystal clear that the cup and handle pattern acts as an excellent bullish . But now let’s understand why it is considered a bullish reversal or continuation of an uptrend.
When I closely analyze the candlestick pattern of the cup and handle pattern, I see price is finding it difficult to steep down from a certain point. In the round bottom of the cup pattern, prices consolidate for a while, here it can be interpreted that buyers are fighting hard to overpower sellers. Hence, the downtrend is losing its momentum.
In the handle, the price again tries to go down, but buyers end the slight downtrend by bringing the price up at an increased pace. Now, It is clear that buyers are trying hard to end the downtrend. This is enough to interpret that a good up move is about to come.
Entry Point/ Long :
The entry point is at the breakout point- $4.197
Stoploss:
The stop loss should be placed below the handle pattern -$3.748
Target:
The target in a cup and handle pattern is equivalent to the depth of the cup-$5.29
Important - This pattern not complete yet, If break out and get confirmation pattern play out , some times due to market condition it will fail.
Do Your Own Analysis .
