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Is a cup and handle pattern tools is essential for all traders?
The cup pattern and handle pattern are vital tools in technical analysis, revered for its ability to predict a bullish market phase. Unlike other chart formations, it gives traders an upper hand by indicating not just the price direction but also providing insights into the strength and duration of a forthcoming uptrend.
In the simplest terms, this pattern is distinguished by two main parts:
The cup pattern is rounded in the chart, indicating that the asset is undergoing a consolidation or a downtrend.
The handle is a shorter, sideways, or downward consolidation phase that appears after the cup.
Do you think it is useful for both novice and professional traders?
Learn more detail: https://finxpdx.com/the-cup-and-handle-pattern-...
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That's new to me, usually know only of candlestick
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Personally, No.
As a trader, the most important trait is risk management. Because no money makes no money. Capital preservation is key.
Next is technicals. Which is what you are interested in. There are various thoughts surrounding this. But if you follow a technical system religiously while applying impeccable risk management, you may likely turn out profitable.
I personally think Price Action taught by Inner Circle Trader makes the most sense in terms of liquidity the market seeks(and thrives on) and his precision and accuracy is impressive.
What is the fastest way to induce money into the markets? (Market) Stop orders. And where are these orders resting at? Price Action can give you an indication.
You can pit this logic against cup and handles.