Cup with Handle Pattern and Tureen or Saucer Pattern

Cup with Handle Pattern

This is another formation that indicates a change in trend and generally, the primary trend. It is a variant of the Double Bottom formation, but with the difference that the first bottom or valley is much larger and deeper than the second, resembling the shape of a cup with a handle. This pattern is not finished until the price curve that forms the handle, does not exceed the upper edge of the cup.

In the Cup with Handle can display two stages: the formation of the cup and the formation of handle.

First stage or formation of the cup. This stage it has for characteristic, a falling price curve with a decrease in volume, to get to the bottom of the formation, when returns upward movement, the volume increases, until reaching the edge of the cup.

Second stage or formation of the handle. To form the handle the price slightly falls, and with him, the volume down to its minimum, and for this stage, the operators realize a possible raise in the price and begin to enter their orders, this adds pressure to the price, to taking it the edge of the cup. Finally the price manages to break the resistance and the pattern is completed.

Tureen Pattern or Saucers Pattern

This is another trend change formation which is rarely in quotes charts and it takes us of trend bearish to a bullish.

It is a charting pattern that takes time to form and belong to the figures called of accumulation.

The formation begins with a fall in prices, which gradually and so it goes, slows down the fall, reaching the lateralization. Then begins a slow ascent in the price, ending of form definite and violent.

Between more time it takes the figure in being formed, more importance will have for our analysis.

The pattern Inverted Saucer formation is similar to its pair, but with the difference that it is from an uptrend to a downtrend.

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Erick Gálvez

Administrador at ASD Forex
Webmaster of and trader of forex market since 2008. I'm in charge of the publication and editing of news and analysis

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