How can I use the cup and handle pattern to predict price movements in cryptocurrencies?

1 answers

• Genevieve HarrisonSep 17, 2021 · 4 years ago
  The cup and handle pattern is a well-known chart pattern used by traders to predict price movements in cryptocurrencies. This pattern is formed when the price creates a rounded bottom (the cup) followed by a small consolidation period (the handle). The cup and handle pattern suggests that the price is likely to break out to the upside, indicating a potential bullish trend. Traders can identify this pattern by looking for a U-shaped price formation followed by a smaller downward movement. Once the handle is formed, a breakout above the handle's resistance level can be seen as a confirmation of the pattern. However, it's important to remember that the cup and handle pattern is not foolproof and should be used in conjunction with other technical analysis tools and indicators for more accurate predictions.
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