QUOTE(Boon3 @ Oct 21 2020, 11:33 AM)
Hehe.... I was really a social distancer ... for not replying you properly....
in all honesty... try not to 'look' for cup and handles setups... they are tricky and it's so easy for us to make mistakes....
Your chart, once more ... did some labelling...
A = left side of the cup... (I placed the A lower so can see clearer)
in a C&H .... one should look for volume that drives the stock to A (the left side of the cup) .... the volume must be there.....
in Greatec, the higher volume occurs after A ....
the bottom of cup (oops I did not label) .... as we go down the cup to the bottom of the cup, we want to see diminishing volume.... volume should be tapering off ... and here, we don't see that in Greatec.
the right side of the CUP ... ah... this is ok... the return of higher volume which drives the stock to the same level as the left side of cup... 'check' , this is OKAY for Greatec....
the last part.. ... or the handle.... for Greatec, imo the handle should see the stock consolidate to 6.60. We did not see a clear forming of the handle.
The buy point.... C .
YES, C is the buy point. There is good volume... and the buy point should be around 7.10.
That's my interpretation and it is also why I wouldn't call this C&H.
pst... the buy point and the low point of the handle.... can u accept meh? if can get 6.60 or 6.70, why wait for 7.10?
LOL!
Awesome write up
Below are what i know about Cup & handle :
» Click to show Spoiler - click again to hide... «
To me the interpretation of "cup", the rounded bottom of cup supposed to indicate a "shaking out" process of weak hands. Once the process of shaking out "weak hands" has been completed, the price is expected to climb back to the starting point of cup, complete the first portion of the pattern.
The handle, somehow resemble a smaller version of cup, also seems to be last chance to shake out the weak hands before the stock went rocket mode.
There are also some "guidelines" like :
- The cup should be at least 5 - 7 weeks in duration. (In the case of Greatec, less than that)
- The process of forming handle should also take at least 5 days (As you mention, the handle was not formed)
Unfortunately human being have an unfortunate tendency to see what we want to see. In this case I see that resembles a cup with handle, and the stock on steroid after that.
Nevertheless, a good pattern should be fairly obvious, it should stand out. If it takes more than a few seconds to identify the pattern , it might not be a useful example of that formation.
Hence you are right
May 21 2020, 09:59 AM
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.... LOL
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