BEAM a perfect cupnhandle. Free trade from my PlaybookA cup and handle( CNH ) is a continuation pattern!
The psychology is that of a rounding bottom accumulation and rejection at prior resistance, without taking out that resistance, so that there are still shortstops at that point.
You then try to buy the higher low on whatever timeframe the CNH is most clear and retracement should never be much more than the FIB 382.
You scale into your trade towards the four hour EMA12 .
And you let her in a few orders and your stock goes below the 382 with a little bit of wiggle room
This is a very basic continuation play
It's one of the few continuation plays that I use , as I mostly use aggressive pullback trades.
The great thing is you immediately stop out for tiny loss , if it does not become a cup and handle. It would then likely become an equilibrium pattern and then you want to stop out and reevaluate. You don't want to be laddering down. Been there done that its not worth the effort.
Be Strong Minded and Enjoy the Process! The Money follows the Strong Mind and Good Consistent Actions.
