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Cup and Handle Patterns

Cup and Handle Pattern on AUDJPY

Cup and Handle Pattern on AUDJPY

Cup and Handle Pattern on AUDJPY is a classical chart pattern which is located at the end of a drop. Therefore, it has bullish implications.

The premise

I want to start by saying that this is the eighth article from a series of twelve in which I explain how did I make +8.72% in a single trading day. Therefore, let’s take a look at the daily chart of AUDJPY. We’ll see that there is a predominant downtrend, a pullback and a huge drop. Our classical chart pattern is located at the end of this drop. So, all we have to do is to try to take advantage of it. You can also see a similar situation in Cup and Handle Pattern on AUDUSD.

cup-and-handle-pattern-on-audjpy-detail
Cup and handle pattern on AUDJPY daily chart detail

How did I trade the cup and handle pattern on AUDJPY?

I simply placed a buy stop order slightly below the resistance. Which in this case I considered to be the March 25th 2020 daily candle high. Consequently my order is open on April 9th 2020.

The outcome

As it was also the case with the Cup and Handle Pattern on AUDUSD this breakout is also a good example of a strong breakout. So, this means that the price went straight into the upside. And it did it in a very strong manner. After the breakout, the price retested the previous resistance, which now acted as a support. And, after the retest, the bulls managed to take the price to a new high. But, as I explained in this article: +8.72% in a single trading day, I closed my trade without a technical reason. Actually, if you take a look at the right, at the huge drop, you’ll see a gap. But this is a debatable situation and in almost every trade you’ll find a kind of resistance or support between your entry point and the target.

the-outcome-of-the-cup-and-handle-pattern-on-audjpy
The outcome of the cup and handle pattern on AUDJPY daily chart

The conclusion

It almost become redundant to repeat the same thing over and over again. But, it is also redundant that I’m fighting with the same mistake over and over again. Therefore, all I have to do is to find a solution for this bad habit of mine which is to collect my profits earlier than I should.

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