How can I use technical analysis to identify a cup and handle pattern in cryptocurrency charts?

1 answers

• Nov 29, 2021 · 3 years ago
  Absolutely! Here's a step-by-step guide on how to identify a cup and handle pattern in cryptocurrency charts using technical analysis: 1. Look for a U-shaped curve or rounded bottom formation on the chart. This is the cup part of the pattern. 2. After the cup formation, there should be a small consolidation or retracement, forming the handle of the pattern. 3. Check the volume during the cup and handle formations. The volume should be higher during the cup formation and lower during the handle formation. 4. Measure the depth of the cup by calculating the difference between the highest point of the cup and the lowest point of the cup. 5. Project the depth of the cup onto the breakout point, which is the highest point of the handle. 6. Set your target price by adding the depth of the cup to the breakout point. Remember, technical analysis is just one tool in your trading toolbox. It's important to consider other factors and indicators before making any trading decisions.
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