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.
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.
A simple will can be created for free if a person uses an online template from a trusted source and/or creates the...
An option is Out Of The Money (OTM) if it isn’t profitable for the option holder to exercise it
Instead of waiting for confirmation of reversal, “buying on weakness” means to go ahead and buy a long position...
Nominal GDP is the value of all good and services produced in a country, without adjustments for inflation
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
Required Rate of Return is the return that investors will expect to earn on their money, given the risk and costs involved
Foreign Transaction Fee. Credit cards & debit cards will charge an additional percentage on transactions made abroad
Commodity indexes are informational services which reflect the price action in a designated commodity or basket of them
The Rising Flag or Bullish Flag pattern looks like a flag. It forms when rising prices experience a consolidation period
The Falling Pennant (or Bearish Pennant) pattern looks like a pennant turned upside down (the mast points up)