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What is the Inverted Cup-and-Handle (Bearish) Pattern?
The Inverted Cup-and-Handle (sometimes called Inverted Cup-and-Holder) pattern forms when prices rise then decline to create an upside-down “U”like shape (1, 2, 3, also known as the Cup), followed by a shorter relatively straight price increase that bounces from the right lip (from 3 to 4, creating the Handle).
The rising handle forms as a result of mounting buying pressure created when the security retests a low at the right lip of the cup. Once the buyers give up, sellers take over and the security has the potential to decline rapidly.
Trade idea
If the price breaks out from the top pattern boundary, day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout level. To identify an exit, compute the target price by subtracting the pattern’s height (the difference between the highest price and the support levels) from the price at the right cup lip. The confirmation move is the breakout of the price below the right cup lip.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
What is the Falling Pennant (Bearish) Pattern?
The Falling Pennant (or Bearish Pennant) pattern looks like a pennant turned upside down (the mast points up)
What is Accrual Rate?
Accrual Rate is the rate at which a nominal interest rate is credited to an account that will be paid out at a later time
What is a foreign transaction fee?
Foreign Transaction Fee. Credit cards & debit cards will charge an additional percentage on transactions made abroad
What does out of the money (OTM) mean?
An option is Out Of The Money (OTM) if it isn’t profitable for the option holder to exercise it
How Much Does it Cost to Prepare a Will?
A simple will can be created for free if a person uses an online template from a trusted source and/or creates the document themselves.
What is the Rising Flag (Bullish) Pattern?
The Rising Flag or Bullish Flag pattern looks like a flag. It forms when rising prices experience a consolidation period
What does “Buying on Weakness” Mean?
Instead of waiting for confirmation of reversal, “buying on weakness” means to go ahead and buy a long position...
What is Nominal GDP?
Nominal GDP is the value of all good and services produced in a country, without adjustments for inflation. GDP is the market value of all final goods and services...
What is a commodity index?
Commodity indexes are informational services which reflect the price action in a designated commodity or basket of commodities
What is Required Rate of Return?
Required Rate of Return is the return that investors will expect to earn on their money, given the risk and costs involved