文档介绍：Cup-and-Handle Trading Techniques For Swing Traders
By Dave Landry
The cup-and-handle is typically a major
reversal pattern that often precedes
large rallies. It is formed when a stock
sells off, bottoms, and then begins to
rally, creating a "cup." After the rally,
the stock drifts lower, forming the
"handle" of the pattern (see Figure 1).
Before discussing cup-and-handle
pattern trading techniques, we will
dissect the pattern itself and explain
why it works. Later we will discuss how
to use volume as a confirming indicator
and offer suggestions about where to
place your entry orders and protective
stops.
Understanding the pattern
To better understand how cups-and-handles function, we will first analyze the market dynamics at
work during the different stages of the pattern. After the initial sell-off plete, the stock trades
in a range as bottom-fishers attempt to buy on dips, and short sellers and short-term traders sell
the stock as it tries to rally. The stock gradually begins to trade in a narrower range as the bulls
and bears begin to agree on price.
Figure 1. Cup-and-handle pattern. The stock sells off, consolidates, rallies, and
then pulls back.
However, this equilibrium seldom lasts long. Breakout players start buying, trying to get an early
jump on a possible new trend, creating the right side of the cup. W