Wayne: 2 more years up and does the cup need a handle?
There are many reversal psatterns, head and shoulders (which can have two heads), cup 'n handle (which is a H&S without a left shoulder), double tops (bottoms), big M (or W), Adam and Eve (which can be a Ada, and Eve and Adam) and the rounding bottom (or top) which is a cup 'n handle without the handle.
Hence, you can have anuthing between 4 and 1 zig-zag. LOL.
Why I like cup 'n handles is that the handle is a consolidation pullback. Once identified, you can derive a commonly accepted target.
This is what I call the chicken and egg target as I believe that many trading programs include those patterns and lure investors. Say that you would have a pattern with a target of $650 identified in most commentaries, my belief is that big money would start selling en masse at 600-630.
Hence, bever try to sell the top. <vbg>
Anyway, from this weekend on, I'll stop pondering about a melt-up or squeeze in POG. |
