How to Trade a Long-Term Cup and Handle Pattern: A $HD Case Study
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Description
In this episode, we examine one of the most powerful bullish chart patterns in technical analysis—the long-term cup and handle pattern—using a real-world example from Home Depot ($HD). Over the past three years, $HD has formed a textbook cup and handle, presenting a potential trading opportunity. Whether you're a swing trader or a long-term investor, this episode will give you actionable insights to approach similar setups confidently. What You’ll Learn in This Episode: What is a Cup and Handle Pattern? A breakdown of its components and why it’s a reliable continuation pattern. The $HD Chart Analysis: How the 3-year pattern developed, including the rounded cup and recent handle consolidation. Key Entry Strategies: When to enter a trade based on the breakout or handle formation. Risk Management: Tips for placing stop losses and calculating reward-to-risk ratios. Price Target Calculations: Learn how to estimate your profit potential using the cup’s depth. The Role of Volume: Why volume confirmation is crucial for successful breakout trades. Why This Episode is a Must-Listen: The cup and handle is a foundational pattern every trader should understand. By studying this pattern on $HD, you’ll gain valuable insights into applying technical analysis to find high-probability trade setups. Here is the link to the $HD chart - https://disciplinedtradersacademy.podia.com/blog/7b22cc13-c42e-43ad-b5f5-7a8e6239a39b Want to join the Disciplined Traders Academy & Community - https://bit.ly/3Mm41N9
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