Technical chart analysis can provide great intraday opportunities. These day trading tips to trade cup and handle pattern are unbeatable.
Cup with handle is a bullish continuation pattern. It can provide good entry & exit points for day trading. These right entries at the right time can help you to generate consistent profits during intraday trades.
If utilized properly, it can also minimize your chances to lose money in an untoward market condition. But, the process of recognizing a technical pattern is not as easy as it may appear theoretically. It involves a lot of work, skills & experience along with necessary time to trace this pattern in real time.
Once you are successful in finding stocks or bonds undergoing this pattern formation, you can safely play intraday trades. Here are top 10 intraday tips or steps to perform trading activities in cup with handle chart pattern:
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(1) Selection Of The Right Kind Of Stocks Or Bonds Is Important In Day Trading
It is one of the most wonderful day trading tips to trade cup and handle pattern. Every stock is not a good fit for intraday or margin trading. You need to select or find only the best stocks for day trading that are also undergoing formation of cup with handle pattern.
These day trading stocks are usually known to have a history of producing good uptrend. These types of stocks or bonds are likely to outperform after bullish breakouts.
Some of the best qualities of day trading stocks include those meeting minimum price & Average Daily Volume (ADV) requirements, high beta stocks that have shown outperformance in the market, & stocks that are currently undergoing solid consolidation within the pattern, as well as stocks that are on the verge of a bullish breakout.
Additionally, these stocks should also have strong fundamentals & investor-friendly management. These stock-specific factors can quickly boost the trading activities of a given script for intraday gains.
For example, technology stocks are often the good candidates for cup with handle pattern because they go in & out of favor with investors.
- Day trading tips to trade cup and handle pattern: Shutterstock