Quote from tradingbug:
Thanks for the Picture. Sorry for the late reply. Been studying for the DAT. Anyway, back to trading. The left side of the cup is a down intermediate term trend while the right side of the cup is the up intermediate term trend. The goal is to enter on pullbacks as the right side of the cup is forming anticipating the eventual BO out of the cup. You might even get a few 10% cycles as it repeatedly tests resistance. As for accumulation/distrubution, look closely at that picture. Notice where the arrows point and how they lead to the bottom of the formation of the cup.
Make sure the stocks are exceptional fundamentally.