"Cup with handle" in Forex technical analysis is a trend continuation pattern.
Aggressive way to trade the Cup and Handle in Forex
The aggressive way is always the most dangerous. The danger lies in the fact that you have to enter the market when the pattern is not yet fully formed, namely, at the moment of formation of the handle. On the other hand, if the pattern turns out to be a real one, an early entry can bring much more tangible profit, with a much smaller stop.
The standard way assumes that the pattern is already in the Cup and Handle, and as we already know, at the moment of breaking through the resistance level the pattern is considered to be already formed.
Based on this logic we can place a pending BuyStop breakout order (click here for more information about pending orders) just above the resistance level with a stop below the breakout candle. At the moment of an impulse breakdown of the level the order will be activated and the price will head to our target.
Aggressive way to trade the Cup and Handle in Forex
The aggressive way is always the most dangerous. The danger lies in the fact that you have to enter the market when the pattern is not yet fully formed, namely, at the moment of formation of the handle. On the other hand, if the pattern turns out to be a real one, an early entry can bring much more tangible profit, with a much smaller stop.
The standard way assumes that the pattern is already in the Cup and Handle, and as we already know, at the moment of breaking through the resistance level the pattern is considered to be already formed.
Based on this logic we can place a pending BuyStop breakout order (click here for more information about pending orders) just above the resistance level with a stop below the breakout candle. At the moment of an impulse breakdown of the level the order will be activated and the price will head to our target.
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