Chart Formation Patterns Lesson 11 Forex Cup And Handle Formation Pattern

Forex Cup And Handle Formation In Forex Trading

The Forex cup and handle formation pattern, or continuation pattern, trend confirmation setup, is a formation pattern in Forex trading that allows traders to make decisive actions based on price breaks in Forex trading. The trend appears typically when a currency pair forms a rounded “U” shape, followed by a smaller subsequent decline, characteristic of a handle cup. The pattern usually takes the form of a breather at the middle of a general trend upward, indicating a potential continuation of bullish pressure. Although it may appear to be a slow setup, the cup and handle pattern can offer excellent trading opportunities. Traders typically look for breakout trades once the handle is complete and the price breaks through resistance.

This lesson teaches you how the Forex cup and handle formation patterns are used and implemented in Forex market analysis and how you can use them for better and more profitable trading.

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