Basic of cups....
See it's macam this...
Hope I can spit everything out clearly.
Stocks came down from a high ( dun care the reason la)..
So it falls off....
Yes is falling...the VOLUME disappears...
(Yeah..for whatever nobody wants to sell anymore)...
So you get a period where it goes comatose...
After time...
The volume and price increases slightly....
People suddenly remember the stock...
So it goes back up.....
So you get the rounded cup scene...
As it inches back up...to where it fell from....
A cup would have formed.....
But then....
U will have a bunch of sellers who were merely waiting to sell at a higher price+u got a bunch of low price traders who were munching bits and bits at the bottom ...they decides to sell to take profit.....
Now that is the handle formation.......
And once these batch of sellers exhaust their selling...
The stock would erupt once the new wave of buying happens........
Ideally the cup formation takes about 6-8 months...
And too long cup formation isn't ideal either...
ie if the cup takes 2 years or longer to form....
Ok ah?
This is as much as i can remember off hand.
Ok understood.. volume must dissapear to form cup.. not only the shape.