Cup and Handle Patterns

Cup and Handle pattern on #TRV

Cup and Handle pattern on #TRV

Cup and Handle pattern on #TRV is a classical chart pattern which might signal a reversal. It is located at the end of a huge 44% drop. So, let’s see how it worked.

The premise

This is the fifth article from a series of twelve about how did I make +8.72% In a Single Day. Therefore, let’s take a look at the daily cart of the #TRV (Travelers Companies Inc). We can see that we have a 44% drop. And, at the end of the drop we have a nice and clear cup and handle pattern.

Cup and Handle pattern on #TRV daily chart detail

An important detail

As I said in Weekly Update 20 – 24 April 2020 article, I started to publish real time updates. Here you’ll find the patterns that I’m currently involved with. Patterns that I’m currently watching and many other interesting things about my trading style. Therefore, if you don’t want to lose my real time updates, you can follow me using this link for my Facebook page and this link for my twitter account. This kind of content will be exclusively published on my Facebook page and my twitter account. You can also check my verified trading results using this link.

How did I trade the cup and handle pattern on #TRV

I considered the resistance of the pattern the March 27th 2020 daily candle high. Therefore I placed my buy stop order slightly above it.

The outcome

In this kind of situations, I’m looking for a quick move. I’m talking about these cases when we have an unexpected drop or surge. Therefore, in our cases we have a 44% drop. So, I expected a quick pullback to appear. Now, let’s take a look at what happened.

The outcome of the cup and handle pattern on #TRV daily chart

The conclusion of the cup and handle pattern on #TRV

If you read this article: Verified Trading Account: +8.72% In a Single Day then you know that I closed my trade without a technical reason. And, even that I managed to close this trade for a +0,3% I should’ve let it run. The outcome would’ve been a loss. But, the point is to stick with your trading rules. Because the result could also have been a win. And if you follow me for a while, then you know that respecting the trading rules is more important then a random profit. That’s because I’m looking only for asymmetrical risk reward trades with a minimum 1:3 rise reward ratio.

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