Oooh yeah, listen here Mean Gene, it’s the Macho Man Randy Savage, too hot to handle, yeah! And I’m here to teach you and all the jabronis about my all-time favorite pattern to trade. It’s even more special to me than the beautiful Miss Elizabeth, the Cup with Handle.
First off, let’s talk about why this pattern is so important. It’s all about continuation, dig it. The Cup with Handle is a bullish pattern that usually forms during a stock’s consolidation period after a significant uptrend. This means that if you can identify this pattern early on, you can get in on a stock before it breaks out and continues its uptrend, yeah.
Now, Mean Gene, the key to trading the Cup with Handle is to look for a few key things. First, you want to look for a “cup” shaped pattern on the stock’s chart, with a slight dip or “handle” at the end, just like the cup of coffee I held up to represent the career of Ricky the Dragon Steamboat, oh yeah. This handle is where you want to enter the trade, as it represents a lower risk entry point before the stock breaks out and continues its uptrend.
Cup With Handle Pattern
But it’s not just about the pattern, it’s also about the volume, baby, yeah. You want to look for increasing volume as the stock approaches the handle. This is a sign that the stock is building momentum and getting ready to break out. You also want to watch for a volume spike at the breakout, similar to how I used to spike that jobber Hulk Hogan, oh yeah. This spike confirms that the stock is indeed breaking out and heading higher, yeah.
Conclusion
So, in summary, Mean Gene, the Cup with Handle is a powerful pattern that can help you get in on a stock before it continues its uptrend, yeah. Just remember to look for the pattern, watch for increasing volume, and look for a volume spike at the breakout. And always remember, the Macho Man is always watching, so make sure you’re trading with all the power of the stars! Just like when Hacksaw Jim Duggan felt the power of my flying elbow right before I took his crown.
Don’t be a jobber like Hulk Hogan, yeah, share this post with your friends and show them the power of the Cup with Handle! Or don’t, I don’t really care. But either way, remember the Macho Man always has the last word in the stock market, too!
Snap into a Slim Jim! Oooh yeah!
To learn more about chart patterns and the momentum-based strategy, visit our education section by clicking HERE.
Get new posts delivered straight to your inbox by signing up below:
