I’ve been using the cup and handle pattern for a few months now. Sometimes it works, other times not so much.
Anyone else trade with this pattern? How reliable do you find it? I’m curious to compare results and see if I’m missing something.
Cup and handle can be decent, but it’s not a magic bullet. I’ve traded it for years and find it works best on longer timeframes, like daily charts. Key is to confirm with other indicators and overall market trend. Don’t just jump in when you see the pattern. Wait for a clean breakout above the handle with good volume. And always use proper stop losses. No pattern is 100% reliable, so manage your risk. I’d say it’s right maybe 60-70% of the time when properly identified. But those are still good odds if you size your positions smartly.
Used cup and handle on 15-min charts. Hit rate around 55%. Works best with strong volume on breakout. Always pair with RSI for confirmation.
Cup and handle patterns can be tricky. Been using them for about a year now, mostly on 4-hour charts. Found they work better in strong uptrends.
One thing that improved my results was waiting for a clear breakout above the handle. Also, checking the depth of the cup - shallower ones tend to be more reliable in my experience.
Still, no pattern’s perfect. Always use stop losses and don’t bet the farm on any single trade.
Cup and handle burned me bad when I first started. Lost 30% of my account in a week.
Now I only trade it on daily charts with strict rules. Last month caught a beautiful setup on Apple that netted 22% profit.
Key for me is volume confirmation and overall market trend. Still only hits about 65% of the time, but position sizing keeps me profitable.
Cup and handle reliability:
• 60-65% success rate on daily charts
• Confirm with volume, trend, other indicators
• Proper risk management essential
• Not foolproof - use as part of broader strategy
• Backtesting crucial to gauge effectiveness