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ID:2256
Title: An Important Chart Pattern: Cup and Handle-Money Classic Research
URL:http://moneyclassicresearch.blogspot.com
Category:Business: Financial Services
Description:The use and deployment of charts has increased with the increase in popularity of technical analysts. The patterns formed in the chart by the application of indicators and oscillators are called chart patterns. The chart patterns are the signals representing the market trend and the price of stock moving in one direction. There are various types of formation in the charts, like cup and handle pattern, head and shoulders pattern, double top and double bottom and many others. There are two types of pattern types: reversal and continuation. A reversal pattern indicates that previous trend will be reversed as soon as the pattern completes. The continuation patterns indicate that previous trend will keep on continuing in the same direction, even after the pattern is completed. One of the most popular patterns is cup and handle pattern. The pattern formed is like a cup with a handle. This pattern shows bullish continuation trend. Pattern shows the break of uptrend and it continues to trade down, but the stock will continue in an upward direction after the completion of the patterns. This pattern generally ranges from few months to years. There are few important facts involved in the formation of the cup and handle pattern. First and foremost thing every technical analyst must know is that before the formation of the cup and handle pattern there is an upward trend. The more the previous trend lasts before the pattern the lower will be the potential for larger breakout after the pattern has been completed. The cup and handle pattern must be formed by proper semi circle formation. The cup and handle formation shows the signal of strengthening of position within a trend. In this scenario, the weak investor leaves the market and sells its stocks and securities. However, the new buyer does not leave the market, they hold on their position. The technical analysts of Money Classic Research are experts in studying the technical charts well and thus offer the best and accurate advice to their customers. Read More @ http://moneyclassicresearch.blogspot.com
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