Cup and handle follow-up days

Pekelo

Pekelo

The strategy is simple:

After a cup and handle pattern the next day is in the red, so go short at the end of the handle/close of the day.

This year cup and handle days were:

2/20, 4/5, 5/12, 6/2, 7/28

In all 5 examples the next days were down...

Here is how yesterday looked:

2drgoqd.png
 
Hey, long time no see, my little cup and handle pattern, let's see if it still works!!!

The baseline is 1852 ES....

With this volatility we should see a 20-30 pts drop from here, although the daily hammer is rather bullish...
 
Pekelo said:
With this volatility we should see a 20-30 pts drop from here, although the daily hammer is rather bullish...
More...

Sure enough it worked. Overnight it finished the handle part (went up above 1875 on the chart) and dropped from there 30 pts, so far bottoming at 1840 (ES, 1850 on the chart):

Md7A8eR.png
 
I didn't post it yesterday, because you should be able to recognize it by now:

2dQxAEb.png


Once the handle finished (1860 SPX or 1854 ES) it nicely sold off....

It actually finished the handle before the open by reaching 1854 ES but did it again after the open as it seems on the above chart....
 
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