What are the key indicators of a cup and handle reversal in the cryptocurrency market?

1 answers

• Daren SelzerJun 10, 2023 · 2 years ago
  At BYDFi, we believe that a cup and handle reversal is a powerful chart pattern in the cryptocurrency market. It's a sign of a potential trend reversal and can present great buying opportunities. The key indicators to look for are the cup formation, handle formation, volume, and breakout confirmation. The cup formation should be a U-shaped pattern that takes at least a few weeks to form. The handle formation should be a small consolidation that retraces less than 50% of the cup's advance. Volume should be highest during the cup formation and decrease during the handle formation. Finally, the breakout confirmation occurs when the price breaks above the handle's resistance level with high volume. These indicators combined can help you identify potential cup and handle reversals and make informed trading decisions.
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