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How does the cup and handle pattern help identify potential price targets in the cryptocurrency market?

avatarjohn doeDec 25, 2021 · 3 years ago1 answers

Can you explain how the cup and handle pattern is used to identify potential price targets in the cryptocurrency market? What are the key characteristics of this pattern and how does it indicate future price movements?

How does the cup and handle pattern help identify potential price targets in the cryptocurrency market?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    The cup and handle pattern is a powerful tool for identifying potential price targets in the cryptocurrency market. It is a bullish continuation pattern that indicates a period of consolidation followed by a breakout. Traders often use this pattern to set price targets for their trades. For example, if the cup is 10% deep, they may set a price target 10% above the breakout point. This pattern is widely recognized and used by traders around the world, including BYDFi. However, it's important to note that no pattern is 100% accurate, and traders should always use other indicators and analysis to confirm their decisions.