CupWatch Products

How To Trade the Cup With Handle Family of Trades

INDICATORS

The following indicators can be loaded into any stock chart to provide additional guidance for making intelligent trading decisions.

#DEL_CupWithHandle – This indicator shows whether the stock symbol contains a Cup with Handle pattern and depicts it on the chart.

#DEL_InvrtdCupWHndle – This indicator shows whether the stock symbol contains an Inverted Cup with Handle pattern and depicts it on the chart.

#DEL_RelVolDaily – This indicator displays the real time 50 Day Average Volume on a Daily Chart.  This indicator needs to be loaded into all charts you trade as it tells you if the stock has the necessary volume to move up after you enter the trade.

#DEL_RelVolIntraday – This indicator displays the real time 50 Day Average Volume on any IntraDay Chart.  This indicator provides same information as the above indicator on a chart of any time interval (1 minute, 2 minute, 5 minute, etc.).

#DEL_DailySupRes – The Daily Support/Resistance Indicator is used to tell the lines of Support and Resistance.  The lines will act as Support when the price is trading above it and it acts as Resistance when the price is trading below it.  The indicator shows two levels of Resistance (R1 & R2), two levels of Support (S1 & S2), and a Neutral Line (REF).

#DEL_WeeklySupRes – The Weekly Support/Resistance Indicator works the same on a Weekly Chart as the Daily Support/Resistance Indicator does on a Daily Chart.

#DEL_IntradaySupRes – The Intraday Support/Resistance Indicator works the same on an IntraDay Chart as the Daily Support/Resistance Indicator does on a Daily Chart.

#DEL_OpenRange – The Open Range Indicator is used only on IntraDay Charts.  It projects lines across the chart for the Opening Range High and the Opening Range Low, where the Opening Range is the first 30 minutes of the trading day.  These lines will also act as lines of Support and Resistance.

#DEL_OpenRangePlus – In addition to Opening Range High and Low the OpenRangePlus also provides lines for Yesterday’s High, Yesterday’s Low, and Yesterday’s Close.  There are those that trade using nothing but these lines.  We use them in addition to the other indicators as a guide only.

Previous Pivot Point TrendLines – This is not a coded Indicator but serves as one of the best Support and Resistance indicators.  These lines can be constructed by using the TrendLines produced with the #DEL_CupWithHandle and the #DEL_InvrtdCupWHndle Indicators.  Just load both indicators into any chart and go back in time and place a horizontal line over all the Pivot Point TrendLines that have occurred in the past.  These can be used for any time interval you prefer to trade.  We do this for every stock we are seriously considering for trading.

The following charts show how the Indicators are displayed on a Chart we are interested in trading. The first chart depicts the Cup with Handle pattern on a daily chart along with the Daily Relative Volume Indicator which shows the Percent of the 50 Day Average Volume Real Time.

(Mouse over Chart for larger view)

The following chart shows the Cup with Handle Indicator, Daily Support/Resistance Indicator and the Daily Relative Volume loaded in the chart simultaneously.  

(Mouse over Chart for larger view)

Both the Cup with Handle and the Inverted Cup with Handle Indicators can be loaded into any chart that has the High, Low, Open and Close depicted. Therefore they can be loaded into both normal Bar Charts as well as Candlestick Charts. The following chart shows the Cup with Handle loaded into a Weekly Chart. The Weekly Support Resistance Indicator is also inserted. 

(Mouse over Chart for larger view)

The Candlestick chart below is an Intraday 5 minute chart for the QQQ. The Intraday Support Resistance Indicator works well with the Previous Pivot Point TrendLines to help the trader make decisions. 

(Mouse over Chart for larger view)

This Candlestick chart adds the OpenRangePlus Indicator, Intraday Support Resistance Indicator and the IntraDay Relative Volume Indicator to a QQQ Chart. Once you become familiar with the use of these indicators you will find it difficult to not use them. 

(Mouse over Chart for larger view)

Testimonials

Richard Pinto – Milford, CT
I've been investing for about thirty years. About 15 years ago I discovered an investment publication and found it to be a quick informative read. More importantly; however, I discovered the core methodology behind the investment strategies it professes. I quickly subscribed to a chart service. ...

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