Loading ...A Question Regarding Cup and Handle Formations
I have a question for all chart experts, especially FGC. Is there an accepted definition for when a rise in the handle of a cup and handle formation, is deemed a clear breakout? Does it just need to break the down trend line from the top of the cup down, or does it need to exceed the high of the cup to be considered a clear breakout?
Here’s a pretty good article on investopedia –
https://www.investopedia.com/terms/c/cupandhandle.asp
Thanks, Ken S. Good recap and some interesting points but I guess I answered my own question. Pretty much breaking the down trend line from beginning of the handle down. But as the investopedia content describes, no hard and fast rules, lots of exceptions and variations.
I call a breakout when the handle breaks out above the line connecting the two tops of the cup CM
Often it hits that line …backs off a bit then breaks thru …retests…. and then up and away .
Of course there are no hard fast rules but I get excited when I see a pattern like that
Are you referencing Silver ?
You sly dog. Absolutely Silver. 40 yr cup & handle!