Trading the Cup & Handle Pattern

[padutrader]

if you look you will find them all over the place

it is pull back to the bear high and instead of continuing the bear trend it goes sideways and then breaks out to the upside.

the inverse C& h is a pull back to the bull low a sideways consolidation and a bull break out.

at least i hope it is

but it is what i remember from my good old days of position trading in the bull from 2003

 

[padutrader]

Then ES is not a stock so I don't know if the rationale that is behind the patterns applies to it in the same way...

because of the liquidity in ES... it applies even more IMO

 

[almx]

I got one on the daily, and maybe one in the making (the retracement was a bit too deep)

 

[almx]

And if you watch carefully there is a small one right on the left of the S letter of the watermark

 

[ironchef]

Wyckoff will only get you so far...you need to know where you are in the wave count or will be left scratching your head why some c&h fail and some don't. Also, the measured move of the c&h will depend on the wave extensions. You may want to look at cyphers as they are related.

View attachment 347078

O'Neil who defined cup & handles, never talked about cyphers and waves so I think you overcomplicate things.

BTW, your C&H in your picture is simply completely wrong.

god i just love a sassy losing trader.

Very interesting dynamics here.

Someone new, couldn't make cup and handle work, looking for help, yet instead of been thankful, rejected outright and very critical when some kind soul offered his opinion to help?

 

[padutrader]

No worries, you have just joined my ignore list along with the Elliot superstar and the other idiot that just opens his mouth to insult people.

you will have to ignore 90% of people here '

no one wants to talk about trading

 

[zghorner]

Very interesting dynamics here.

Someone new, couldn't make cup and handle work, looking for help, yet instead of been thankful, rejected outright and very critical when some kind soul offered his opinion to help?

i believe that most people are just not aware of how ridiculous their behavior is. unconsciously acting like an ungrateful buffoon...taking offense to even the slightest criticism. Asleep with their eyes open...you can hear them snoring through the screen.

I am an expert in this subject because i am the most guilty lol.

 

[wxytrader]

I got one on the daily, and maybe one in the making (the retracement was a bit too deep)

On what planet is that a C&H? It invalidates as soon as it retraces more than 50% according to the rules...not to mention its more of a V not enough rounding. Also, what you've done with the drawn in c&h is chart the handle of a prior, larger cup and handle.

The C&H you should be looking at is the one below, and going by the target rule of the depth of the cup added to the break out we are about at that target...which further invalidates the one you are looking at...although it can pullback giving the impression of a handle forming.

If you really want to know what's going on you have to zoom out.

However, keep in mind that the 5 wave can extend 1.6 fib from the beginning of the 1 wave, which is very extended, to the end of the 3 wave...so personally I would use those levels over the rough C&H levels because C&H's technically don't even exist...they are just part of the EW structure.

 

[almx]

you will have to ignore 90% of people here '

no one wants to talk about trading

Yeah, have seen that, I just put people on ignore when being too condescending and I'm fine.

 

[wxytrader]

Yeah, have seen that, I just put people on ignore when being too condescending and I'm fine.

I'll talk trading all day. I just explained why trying to trade C&H's is futile if you don't understand the wave count.

Did @almx block me? lol...this is why some people will never learn...they would rather bury their head in the sand.