suriNotes.com’s Oct. 16, 2017 Chart Patterns & Algo. Trader A Weekly Magazine ●Stocks/Options/Futures ●Commodities/FX ●Daily/Weekly/Monthly Analysis ●Watchlists ●Auto Generated Chart Patterns/Analysis Trading Cup & Handle Patterns ●Algorithmic Trading Analysis/Results ●Advanced Trading Ideas ●Relative Strength Ranks
2 Chart Patterns & Algorithmic Trader 2017 ALL RIGHTS RESERVED No part of this document may be reproduced or transmitted without the express written consent of the suriNotes.com or Suri Duddella. This document relies on sources and information reasonably believed to be accurate, but neither the author nor publisher guarantees accuracy or completeness. The examples in this document could be considered hypothetical trades. The CFTC warns that: HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. COPYRIGHT © 2017 – suriNotes.com Data & Charts are created by TradeStation Software from TradeStation Securities. Published in the United States of America
3 Disclaimer: All the material in this document is provided as Educational Material only. NONE of the chart patterns or chart setups or all other material in this document are trade recommendations. Trading is risky. You are 100% responsible for your own trading. Trading is risky. You are 100% responsible for your own trading. suriNotes.com or Suri Duddella, specifically disclaims any and all express and implied warranties. Your trades may entail substantial loss. Nothing in this document should be construed as a recommendation to buy or sell any security or other instrument, or a determination that any trade is suitable for you. Chart Patterns and other material in this document are Auto generated in TradeStation software and we try our best to check for errors and data consistency, but they may still consist of data or algorithmic errors.
4 Table of Contents US Markets Patterns Gallery Chart Patterns Stocks/Futures/Commodities/FX Earnings Next Week/Charts Weekly/YTD Relative Performances Hot WatchLists Bullish/Bearish, Momentum, Relative Strength Key Levels: Key Supp/Resistance/Pivots Charts GAP Charts EDUCATION Symbols Universe Books/Websites/Software ALGORITHMIC TRADER Trading Cup & Handle Patterns Algorithmic Trades
5 Major Markets Patterns Gallery
6 Major Indexes %Chg YTD
7 Chart Patterns Stocks/Options/Indexes
Chart Patterns & Algorithmic Trader (8) SPX AB=CD Pattern $SPX (Daily) is trading in AB=CD pattern. AB=CD price targets are 100%AB at 2555, 2592. www.surinotes.com
Chart Patterns & Algorithmic Trader @NQ Rising Wedge (9) @NQ is trading in Rising Wedge pattern. Wedge patterns are only valid when price closes below last pivot in opposite direction. Current last pivot is 5842. Until price closes below 5842, @NQ is trading in strong uptrend. www.surinotes.com
Chart Patterns & Algorithmic Trader (10) INTC ABC Bullish + eSix Price/Time Targets INTC (Daily) trading in ABC Bullish pattern. Long entry was above 35.12 supported by eSIX (Green) signal, stop below 34.38. First Target zone was 36.5 to 37, Second target zone was $38.8 to $40. The time-cycle projections were plotted for Options traders. www.surinotes.com
Chart Patterns & Algorithmic Trader (11) EXPE Head and Shoulders Pattern EXPE (Daily, Earnings: 10/26) is trading in Head and Shoulders pattern. H&S Patterns are only valid when price closes below neckline ($142) with increased volume. H&S patterns are invalid if price closes and trades above the high of righthand shoulder. www.surinotes.com
Chart Patterns & Algorithmic Trader (12) EFX Parabolic Arc Pattern EFX (Weekly) chart shows Parabolic Arc pattern. Short entry is below $120. Most Parabolic Arc patterns return to at least 50-62% of its prior rise. www.surinotes.com
Chart Patterns & Algorithmic Trader (13) GOOG Rectangle Channel GOOG (Daily, Earnings: 10/26) is trading in Rectangle Channel pattern. Watch upper and lower channel boundaries for potential trades. Target levels are shown in green shaded area. www.surinotes.com
Chart Patterns & Algorithmic Trader (14) MELI Triple Top Pattern MELI (Daily, Earnings: 11/02) is showing a Triple Top pattern. Since June 2017, prices and eSix are diverging as it builds a top near $290 levels. The negative divergence with eSix is shown near all price three peaks. www.surinotes.com
Chart Patterns & Algorithmic Trader (15) LULU in Rectangle Channel LULU is trading in Rectangle Channel as prices trade in a $57 to $63 band. www.surinotes.com
Chart Patterns & Algorithmic Trader (16) DPZ Parabolic Arc Pattern DPZ (W) is trading in Parabolic Arc pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (17) SWKS Cup & Handle Pattern SWKS (W) is trading in Cup & Handle pattern. Breakout: $112.88. www.surinotes.com
Chart Patterns & Algorithmic Trader (18) COST H&S Pattern $COST (D) is forming HS Pattern. Short entry is below $157, Stop: $162.5. www.surinotes.com
Chart Patterns & Algorithmic Trader (19) COST Bear Flag Pattern COST (W) is forming a Bear Flag. www.surinotes.com
Chart Patterns & Algorithmic Trader (20) WMT ABC Bullish Pattern $WMT (W) ABC Bullish Pattern Long Entry above 68.50, Stop below 65.27 (-3.23), Target1 Zone: 77.0 to 80.1, Target2 Zone: 89.3 to 95.9 www.surinotes.com
Chart Patterns & Algorithmic Trader (21) GLD ABC Bullish Pattern $GLD (W) ABC Bullish Pattern Long Entry above 111.91, Stop below 106.99 (-4.92), Target1 Zone: 126.1 to 131.3 www.surinotes.com
Chart Patterns & Algorithmic Trader (22) NTES Head and Shoulders Pattern $NTES (D) HS Pattern. Short entry below 259.44, Stop above 277.50 (-18.06), Target1 Zone: 211.2 to 198.0, Target2 Zone: 160.2 to 132.9 www.surinotes.com
Chart Patterns & Algorithmic Trader (23) ILMN Bull Flag Pattern ILMN (W) is trading in Bull Flag pattern. Targets $203-211, $223, $238-257. www.surinotes.com
Chart Patterns & Algorithmic Trader (24) CVS Parabolic Arc Pattern CVS (W) is trading in Parabolic Arc pattern. Targets: $68.5, $42.5 to $57.5. www.surinotes.com
Chart Patterns & Algorithmic Trader (25) UPS Cup & Handle Pattern UPS (Daily, Earnings: 10/26) is trading in Cup & Handle pattern. Breakout level: $120.44. Targets: $127, 131. www.surinotes.com
Chart Patterns & Algorithmic Trader (26) FDX Cup & Handle Pattern FDX (Daily) is trading in Cup & Handle pattern. Breakout level: $220. Targets $226, $220-233. www.surinotes.com
Chart Patterns & Algorithmic Trader (27) ADSK Ascending Triangle Pattern ADSK is trading in Ascending Triangle pattern. Targets $125-127, $130 www.surinotes.com
Chart Patterns & Algorithmic Trader (28) ORLY Parabolic Arc Pattern ORLY (W) is trading in Parabolic Arc pattern. Most Parabolic Arc patterns retrun to 50-62% of its prior rise. Targets $156, $123. www.surinotes.com
Chart Patterns & Algorithmic Trader (29) AMAT Ascending Triangle Pattern AMAT is trading in Ascending Triangle. Breakout level is $47.58. Targets $55-$57. www.surinotes.com
Chart Patterns & Algorithmic Trader (30) IYR (Real Estate) Linear Regression Channel IYR’s Linear Regression Channel. www.surinotes.com
Chart Patterns & Algorithmic Trader (31) RWR (REIT) Symm. Triangle Pattern RWR (Dow Jones Wilshire REIT) is trading Symm. Triangle pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (32) AMD ABC Bullish Pattern $AMD (D) ABC Bullish Pattern Long Entry above 12.57, Stop below 11.85 (-0.72), Target1 Zone: 15.4 to 16.4, Target2 Zone: 19.2 to 21.3 www.surinotes.com
Chart Patterns & Algorithmic Trader (33) GDX ABC Bullish Pattern $GDX (W) ABC Bullish Pattern Long Entry above 21.50, Stop below 18.57 (-2.93), Target1 Zone: 30.6 to 33.8, Target2 Zone: 43.2 to 50.0 www.surinotes.com
34 Chart Patterns Futures & Commodities
Chart Patterns & Algorithmic Trader (35) @S (Soybeans) Double Bottom Pattern @S (Daily, 3/5 stars) is trading in Double Bottom pattern (89.74% retracement). Entry above $940, Stop $920. Targets $974, $1007-1031, 1061. www.surinotes.com
Chart Patterns & Algorithmic Trader (36) @HO (Heating Oil) AB=CD Pattern @HO (Daily, 3/5 Stars) is trading in AB=CD Pattern. Price reached 100%AB Target at 1.8535 and showing signs of weakness. www.surinotes.com
Chart Patterns & Algorithmic Trader (37) @QM ABC Bullish Pattern $@QM (Daily, 3.5/5 Stars) ABC Bullish Pattern Long Entry above 48.050, Stop below 46.125 (-1.925), Target1 Zone: 51.22 to 52.60, Target2 Zone: 56.56 to 59.43 www.surinotes.com
Chart Patterns & Algorithmic Trader (38) @QM Inv. HS Pattern $@QM (D) Inv. HS Pattern. Long entry above 51.150, Stop below 48.650 (2.500), Target1 Zone: 56.22 to 57.60, Target2 Zone: 61.56 to 64.43 www.surinotes.com
Chart Patterns & Algorithmic Trader (39) @FC (Feeder Cattle) Bull Flag Pattern @FC (Weekly) is showing a Bull Flag pattern above 200 MA (151.850). First target range is 168.30-174.975. www.surinotes.com
Chart Patterns & Algorithmic Trader (40) @GC (Gold) in ABC Bullish Pattern @GC (Gold Futures, Daily, 2/5 Stars) is trading in ABC Bullish Pattern. Long Entry above 1281.7, Stop below 1262.7 (-19.0), Target1 Zone: 1357 to 1382, Target2 Zone: 1456 to 1509 www.surinotes.com
Chart Patterns & Algorithmic Trader (41) @SI (Silver) ABC Bullish Pattern $@SI (D) ABC Bullish Pattern Long Entry above 16.786, Stop below 16.340 (-0.446), Target1 Zone: 18.23 to 18.75, Target2 Zone: 20.23 to 21.30 www.surinotes.com
Chart Patterns & Algorithmic Trader (42) @SI (Silver) Inv. HS Pattern $@SI (D) Inv. HS Pattern (F). Long entry above 17.896, Stop below 17.121 (0.776), Target1 Zone: 19.54 to 19.99, Target2 Zone: 21.28 to 22.21 www.surinotes.com
Chart Patterns & Algorithmic Trader (43) @OJ (Orange Juice) ABC Bullish Pattern $@OJ (W) ABC Bullish Pattern Long Entry above 132.90, Stop below 117.45 (15.45), Target1 Zone: 192.9 to 213.4, Target2 Zone: 272.4 to 315.1 www.surinotes.com
Chart Patterns & Algorithmic Trader (44) @SB (Sugar) Desc. Triangle Pattern @SB (Daily) is trading in Descending Triangle. Watch upper and lower trendlines for potential trades. www.surinotes.com
Chart Patterns & Algorithmic Trader (45) @PL (Platinum) Double Bottom Pattern Platinum Futures (@PL, Daily, 0.5/5 Stars) is trading in Double Bottom pattern. Long Entry above 922.20, Stop below 906.40 (-15.80), Target1 Zone: 990.0 to 1012.7, Target2 Zone: 1078.1 to 1125.4 www.surinotes.com
Chart Patterns & Algorithmic Trader (46) @EC (Euro) Bull Flag Pattern @EC (Daily) forming a Bull Flag pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (47) @JY (Japanese Yen) Rectangle Channel @JY (Daily) is forming Rectangle channel. Watch upper and lower trend lines for potential trades. Potential target levels are shown in green shaded areas. www.surinotes.com
Chart Patterns & Algorithmic Trader (48) @BP (British Pound) ABC Bullish Pattern $@BP (D) ABC Bullish Pattern Long Entry above 1.3208, Stop below 1.3047 (0.0161), Target1 Zone: 1.359 to 1.374, Target2 Zone: 1.416 to 1.447 www.surinotes.com
Chart Patterns & Algorithmic Trader (49) @CD (Canadian Dollar) ABC Bullish Pattern $@CD (W) ABC Bullish Pattern Long Entry above 0.74433, Stop below 0.72685 (0.01748), Target1 Zone: 0.8020 to 0.8224, Target2 Zone: 0.8812 to 0.9237 www.surinotes.com
50 Chart Patterns FX
Chart Patterns & Algorithmic Trader (51) AUDJPY ABC Bullish Pattern $AUDJPY (D) ABC Bullish Pattern Long Entry above 87.768, Stop below 87.241 (0.527), Target1 Zone: 90.24 to 91.05, Target2 Zone: 93.40 to 95.10 www.surinotes.com
Chart Patterns & Algorithmic Trader (52) AUDJPY Cup & Handle Pattern AUDJPY (D) is trading in Cup & Handle pattern. Breakout level is 88.171. www.surinotes.com
Chart Patterns & Algorithmic Trader (53) CADJPY Cup & Handle Pattern CADJPY is trading in Cup and Handle pattern. Breakout level: 88.914 www.surinotes.com
Chart Patterns & Algorithmic Trader (54) CHFJPY ABC Bullish Pattern $CHFJPY (W) ABC Bullish Pattern Long Entry above 110.483, Stop below 107.675 (-2.808), Target1 Zone: 116.19 to 118.50, Target2 Zone: 125.17 to 129.99 www.surinotes.com
Chart Patterns & Algorithmic Trader (55) EURNZD ABC Bullish Pattern $EURNZD (D) ABC Bullish Pattern Long Entry above 1.54442, Stop below 1.52339 (-0.02103), Target1 Zone: 1.6286 to 1.6572, Target2 Zone: 1.7396 to 1.7991 www.surinotes.com
Chart Patterns & Algorithmic Trader (56) EURAUD Inv. HS Pattern $EURAUD (D) Inv. HS Pattern (F). Long entry above 1.50737, Stop below 1.49315 (0.01422), Target1 Zone: 1.5478 to 1.5588, Target2 Zone: 1.5904 to 1.6133 www.surinotes.com
Chart Patterns & Algorithmic Trader (57) GBPJPY Rectangle Channel GBPJPY (Daily) is trading in Rectangle Channel pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (58) NZDUSD H&S Pattern $NZDUSD (D) HS Pattern (F). Short entry below 0.72013, Stop above 0.73172 (0.01159), Target1 Zone: 0.6981 to 0.6921, Target2 Zone: 0.6749 to 0.6624 www.surinotes.com
Key Support/Resistance, Pivots
Chart Patterns & Algorithmic Trader (60) ES Fib. Zone Pivots @ES Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (61) NQ Fib. Zone Pivots NQ Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (62) YM Fib. Zone Pivots YM Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (63) QM Fib. Zone Pivots QM Fib. Zone Pivots www.surinotes.com
Chart Patterns & Algorithmic Trader (64) @GC Fib. Zone Pivots @GC Fib. Zone Pivots www.surinotes.com
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66 GAP Charts Shows filled and unfilled gap levels
Chart Patterns & Algorithmic Trader @ES Gap Chart (67) @ES Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader @NQ Gap Chart (68) @NQ Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader @YM Gap Chart (69) @YM Gap chart with filled and unfilled Gaps with at least 1 ATR Gap. www.surinotes.com
Chart Patterns & Algorithmic Trader AAPL Gap Chart (70) AAPL Gap Chart shows the upside gap from 8/2/17 is closed at lower gap level $150.05. www.surinotes.com
71 Earnings Companies releasing earnings in the next few weeks.
72 October Earnings Calendar
73 November Earnings Calendar
Chart Patterns & Algorithmic Trader (74) NFLX Symm. Triangle Pattern NFLX (Daily, Earnings: 10/16) is trading in Symm. Triangle pattern. Price is trading above breakout level (189.59). Upside targets are 199, 206-211. www.surinotes.com
Chart Patterns & Algorithmic Trader (75) NFLX Cup & Handle Pattern NFLX (Earnings 10/16) is trading in Cup & Handle Pattern. Entry above breakout level: 191.50, Handle Low: 176.50, 55.01% below breakout level. T1: 208.4 to 212.9, T2: 226.1 to 235.7 www.surinotes.com
Chart Patterns & Algorithmic Trader (76) GS ABC Bullish Pattern $GS (D) ABC Bullish Pattern Long Entry above 220.31, Stop below 214.63 (-5.68), Target1 Zone: 230.8 to 235.2, Target2 Zone: 247.9 to 257.1 www.surinotes.com
Chart Patterns & Algorithmic Trader GS Inv. HS Pattern (77) $GS (Earnings 10/17/17) Inv. HS Pattern. Long entry above 229.36, Stop below 222.00 (7.36), Target1 Zone: 241.6 to 244.9, Target2 Zone: 254.4 to 261.3 www.surinotes.com
Chart Patterns & Algorithmic Trader (78) JNJ Cup & Handle Pattern JNJ (Earnings 10/17) is trading in Cup & Handle pattern. JNJ is also forming another Bull Flag near 1st Target zone. www.surinotes.com
Chart Patterns & Algorithmic Trader (79) MS ABC Bullish Pattern $MS (W, 3.5/5 stars) ABC Bullish Pattern Long Entry above 24.80, Stop below 21.15 (-3.65), Target1 Zone: 38.9 to 43.8, Target2 Zone: 57.7 to 67.8 www.surinotes.com
Chart Patterns & Algorithmic Trader (80) AXP Symm. Triangle Pattern AXP (Earnings: 10/18) is trading in Symmetric Triangle pattern. Breakout level is above 80.79, Stop below 75.97. Targets 84.80-85.89, 89-91.30, 93.77 www.surinotes.com
Chart Patterns & Algorithmic Trader (81) EBAY AB=CD Pattern EBAY Earnings 10/18 forming AB=CD pattern. AB=CD patterns complete between 100-127% of AB leg. www.surinotes.com
Chart Patterns & Algorithmic Trader (82) MXIM Failed H&S Pattern MXIM Earnings 10/19/17. MXIM is trading in Failed H&S Pattern. MXIM traded below Neckline (44.09) on 8/18 to confirm H&S pattern. Price quickly reversed and traded above neckline as a first clue that pattern may be not complete. MXIM traded above trendline connecting the high of Head and high of RS to give its first clue that H&S may be a failure. Finally on 9/29, prices traded above high of RS to confirm failed H&S pattern. www.surinotes.com
Chart Patterns & Algorithmic Trader (83) SAP Symm. Triangle Pattern SAP Earnings: 10/19/17. Symm. Triangle pattern breakout: $107.55, first target zone: $111-113, Second Target zone: $116-119. www.surinotes.com
84 Weekly Relative Performances
85 Sector & Indexes Relative Performances Winners: Utilities, Technology, Airlines, Insurance Losers: Retail, Financials, Healthcare
86 Dow 30 Weekly Relative Performance
87 Select Sectors Weekly Performance
Country ETFs Weekly Performance
Commodity ETFs Weekly Performance
Futures Weekly Performance
FX Weekly Performance
92 Watch Lists Momentum Relative Strength Bullish/Bearish Lists NH/NL Oversold/Overbought Key Retracements
93 Relative Strength Ranks (200)
94 RS Ranks Sorted (Alpha)
95 Bullish/Bearish List
96 52 Week Highs and Lows
97 D%, W%, M%, YTD%
98 Algorithmic Trading Algo. Techniques Algo. Reports Current Algorithms ALL RETURNS POSTED ON THIS PUBLICATION ARE HYPOTHETICAL PERFORMANCE GENERATED BY COMPUTERIZED SYSTEM AND THEY ARE NOT ACTUAL TRADE REPORTS. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
99 Trading Cup & Handle Patterns by Suri Duddella The Cup and Handle Chart pattern was developed and popularized by William J. O’Neil in the 1980s through his CANSLIM methodology, Investors Business Daily newspaper and his book "How to Make Money in Stocks." Cup and Handle pattern resembles a Cup with a Handle. Cup and Handle patterns are continuation patterns, and they usually form in bullish trends. Most Cup and Handle patterns are very reliable and offer great trading opportunities. They also form in all markets and in all time-frames. The “Cup” formation is developed as consolidation phase during price rallies from the round bottom formation over multiple weeks to months. The “Handle” part forms due to a price correction after “Cup” formation and before a clear breakout to the upside. Cup and Handle pattern structure show the momentum pause after reaching a new high in a U-Shape form, followed by another attempt to breakout. When this breakout from the rim of the cup fails it starts to fall back to build the "Handle" structure. Usually, the handle structures are small, and the handle depth should not exceed more than 50% of cup depth. This handle part of the pattern generates interest in buyers as they expect the pattern to breakout from these levels. The pattern is valid only if price convincingly breaks out with increased volume above the rim of the cup levels. Key pattern characteristics Trend: Prior trend before the formation of Cup & Handle pattern must be bullish. Cup Shape: The Cup formation should be "U" shaped and not "V" shaped. Cup Depth: Cup should retrace at least 25% of cup depth but may not be more than 50% of cup depth. Handle: Handle resembles a flag formation in a pullback fashion. Breadth (Width) of Handle is usually small, and it can be 25-40% of Cup's width. Volume: Volume diminishes during the first half of the cup and increases during the right side rise of the cup. Handle also exhibits a similar volume behavior. Volume should see a significant surge during breakout above the rim level. Duration: Cup and Handle patterns must have extended breadth (2 to 12 weeks) to be a valid pattern. How to Trade Entry: Cup and Handle patterns present great bullish trading opportunities. When the pattern breaks out above the rim of the cup, a 'long' trade is entered above the high of the breakout bar. Stop: A stop should be placed below the middle of the handle level. Targets: Targets are placed at 62-79% and 127162% of the height of the cup above breakout level.
Cup & Handle Trades & Stats. Sorry, this compilation was not ready before publication. We’ll try to publish these results in future publications. Current Examples The following examples shows current AMTD and JNJ daily charts with Cup and Handle Patterns. .
101 PlatoAlgo. Performance Report (10/06/17) Not for Sale or Lease.
102 Monty Algo. Performance (10/6/2017) Long Term, NOT for Lease or Sale
103 Symbols Universe
104 Symbols Universe
Books/Websites/Software
106
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