"Jack's Trading Classroom: ETHUSD Potential Cup and Handle Pattern"

Original: Jack's Trading Classroom "ETHUSD Potential Cup and Handle Pattern"

Currently, we can see a inverted cup and handle pattern on the four-hour candlestick chart of ETHUSD. Experienced traders know that the inverted cup and handle pattern can be used as a technical pattern for a continuation of a downtrend. After confirmation of the cup body and handle, there is a high probability that the price will continue to weaken after breaking below the low point of the handle.

Ethereum has rebounded from a low point at 312.50 earlier, which can be considered as the confirmation of the handle. The cup body and handle pattern on the chart has been fully established. We can enter a short position after the price breaks below the handle low point at 312.50.

When using the cup and handle pattern strategy, the profit-taking distance after the handle is broken should be calculated from the handle. Set the stop-loss at a 1:1 distance from the high point of the cup body to the low point of the handle. Fibonacci sequence can also be applied. Using 394.50 as 0 for the high point of the cup body and 312.50 as 100 for the low point of the handle, look for the Fibonacci 200-230.50 as the price level for the decline to satisfy. The first profit-taking target can be selected at the Fibonacci sequence targets of 127.2-138.2, 281.20-290.20. Some profit can be taken, and the remaining position can be held until the lower level of 200-230.50.

Remember! This trading pattern is for entering from the right side, so wait. Once the entry conditions are met, avoid entering too early and exposing your position to excessive risks.

Resistance levels above
R1 348.90
R2 352.5
R3 368.65
Support levels below
S1 337.55

The recent digital currency market has been volatile. It is recommended that traders strictly implement risk control measures and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, please read with caution, as cryptocurrency trading may pose risks to your capital.

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