Accurately Capture the Rising Trend in the Crypto Market with the "Cup and Handle" Pattern

In the crypto market, accurately identifying an uptrend is a key factor in making effective trading decisions. One of the most important technical tools for recognizing an uptrend is the “Cup and Handle” pattern (cup and handle). This article will analyze in detail how to recognize it, the points to note, and how to apply this pattern to real trading.

1. The nature of the Cup and Handle pattern The Cup and Handle pattern has two basic forms: Standard cup and handle (bottom facing down)Inverted cup and handle (bottom facing up) Regardless of its form, the essence of this pattern is a bullish signal (bullish signal): When appearing in a bullish trend, the pattern signals that the upward momentum will continue. When appearing in a bearish trend, the pattern indicates a potential reversal to the upside. Important point: do not worry too much about the position of appearance, but focus on the breaking trend after the pattern is formed.
2. The practical structure of Cup and Handle A standard pattern must include two main parts: the cup and the handle. a) Cup part The bottom of the cup has a crescent or rounded shape. After the price hits the bottom, it accumulates within a narrow range, with consecutive candles gradually getting smaller, indicating that buying power is being accumulated. b) Handle part The handle appears under the collar line (neckline). The price fluctuates within a small range, waiting for a breakout opportunity. This is the final accumulation phase before the crypto market rises sharply.
3. Important details to note Trading volume (volume): When the price approaches the bottom of the cup, the volume needs to gradually increase. If there is no accompanying volume, the pattern may be a false signal, not reflecting the actual flow of money into the thị trường tiền điện tử.The neckline (neckline): When the price approaches the resistance level, do not rush to place a sell order (short). Instead, observe the momentum (momentum): If the price approaches the neckline with sufficient strength and there is no strong sell-off, a false breakout is not a bearish signal, but is usually accompanied by a strong price increase.
4. Practical applications When the Cup and Handle pattern forms, prepare to observe the breakout. Confirm increasing volume and momentum to decide when to enter a buy order. Limit decisions based on a single resistance level; instead, focus on accumulated buying pressure and breakout. The Cup and Handle pattern is not just a theory on the chart, but a practical tool that helps investors identify the next upward trend in the crypto market.