PDD - Cup and handle pattern (feedback requested)
I am a price action trader. However, I am training my eyes to look for other patterns. This might be the first time I noticed a cup and handle pattern on my own. So I did a bit of research to understand it. I do have a couple of questions for experienced community members (Please see at the end).
A basic requirement for this pattern (or for any kind of impulsive move), you must have good fundamentals.
The Chinese companies listed on US have had some good fundamental news in the last 2 weeks, even though there are some concerns for China's economy.
07/12 - AI new regulatory information for AI
07/12 - BABA to build advanced computing center (A.I)
07/11 - China unwinds tech crackdown
07/10 - China Deflation Fears Overshadow Hopes of Easing Regulation
I followed a guide to cup and handle pattern that was published here on trading view
I have a couple of clarifications:
1. Does the U shape need to have a 1/3 retracement of prior bullish trend? Please elaborate on exceptions.
2. Does the uptrend of the U shape have to be contained within the cup? If you look at PDD, the rounding is outside of the cup diagram.
Thoughts?
A basic requirement for this pattern (or for any kind of impulsive move), you must have good fundamentals.
The Chinese companies listed on US have had some good fundamental news in the last 2 weeks, even though there are some concerns for China's economy.
07/12 - AI new regulatory information for AI
07/12 - BABA to build advanced computing center (A.I)
07/11 - China unwinds tech crackdown
07/10 - China Deflation Fears Overshadow Hopes of Easing Regulation
I followed a guide to cup and handle pattern that was published here on trading view
I have a couple of clarifications:
1. Does the U shape need to have a 1/3 retracement of prior bullish trend? Please elaborate on exceptions.
2. Does the uptrend of the U shape have to be contained within the cup? If you look at PDD, the rounding is outside of the cup diagram.
Thoughts?