Understanding Cup and Handle pattern with ONGC

1. Cup and handle pattern was defined by William J. O'Neil in 1988

2. It is considered as a bullish pattern continuation pattern

3. In cup and handle pattern, volume of the security should decrease as price declines and remain lower than the average at the base of the cup

4. The volume should pick up when the price of the security moves higher

5. Target is usually calculated as the price difference between the bottom of the cup and the resistance(depth of the cup)

6. The handle of the cup is usually a consolidation phase that is used to accumulate the stock

Let's not forget to thank ONGC for being a perfect example of Cup and handle pattern.

Hope you learnt something new. Please post in the comments if you have any queries and give a like if you found the post useful. Happy learning!

Regards,
Segan