What are the key features of a cup and handle chart in cryptocurrency trading?

1 answers

• May 02, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that a cup and handle chart is a powerful tool for identifying potential bullish trends in cryptocurrency trading. The cup and handle pattern consists of a rounded bottom (the cup) followed by a small consolidation (the handle). The key features of this chart pattern include the shape of the cup, the shape of the handle, and the breakout level. The cup should be U-shaped and the handle should be a small consolidation. When the price breaks above the handle, it indicates a potential bullish trend. Traders can use this pattern to identify potential buying opportunities and set their stop-loss orders below the breakout level to manage risk.
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