Trading the Cup & Handle Pattern

Discussion in 'Journals' started by almx, Aug 21, 2024.

  1. almx

    almx

    [​IMG]

    Simple, each line is worth 10%
    Showing you the first one that says the market is in an up trend, the others are private.
     
    #71     Aug 31, 2024
    deaddog likes this.
  2. Lol like we couldn't guess the other 9
     
    #72     Aug 31, 2024
  3. deaddog

    deaddog

    Thanks.
    I thought you might have a ranking system that wasn't binary.
    Something where you assigned a number between one and ten for each condition that might aid in choosing one stock over another when you have several at 90% and not enough capital to take a full position in all of them.
     
    #73     Aug 31, 2024
  4. almx

    almx

    It's an idea but maybe a bit too much...

    The issue that you describe is exactly what I face right now, but instead of looking for the one that is the most perfect, I prefer looking at its character like recent volatility or if the stock has a tendency to just make bumps with deep retracements and also look at the fundamentals, etc, just trying to have an educated opinion like, you know, I like this one, that one a bit less, you get the idea.
     
    #74     Aug 31, 2024
  5. deaddog

    deaddog

    You might consider giving more wieght to those conditions rather than having a binary system.
    Instead of is it in an uptrend, yes or no, you look at the slope of the uptrend and give it a value based on your opinion of how the stock is moving. Mabe based in the distance from a moving average or how symmetrical the stacked ma's are.
     
    #75     Aug 31, 2024
    almx likes this.
  6. themickey

    themickey

    I have a question which may open a can of worms.
    Is technical analysis magic?

    Do things like EW and cup and handles predict the future?
    When professional traders trade, are they somehow guided by the almighty to trade EW and cup & handles which are written into destiny?
     
    #76     Aug 31, 2024
  7. almx

    almx

    The answers are simple, no, no and no.
     
    #77     Sep 1, 2024
    themickey likes this.
  8. themickey

    themickey

    Hmmmm, was wondering because wxytrader thinks they're based on crystal balls.
     
    #78     Sep 1, 2024
    almx likes this.
  9. Darc

    Darc

    #79     Sep 1, 2024
  10. almx

    almx

    Chewy, Inc. (CHWY) - Retail - Internet (Open)
    Operates as an online retailer of pet food and other pet-related products and services. It supplies pet medications, food, treats and other pet-health products and services for dogs, cats, fish, birds, small pets, horses, and reptiles.

    Trade Checklist Score - Timing, fundamentals and pattern quality.
    The stock scores 90% which is OK for a long trade tentative.

    One negative is that I came a bit late and entered beyond my ideal entry point which is just above breakout level so I increased my Stop Loss to 7.5% risk but I will be closely following it and eventually close earlier if the action is weak and if there is no follow through.

    [​IMG]


    Trade Parameters.
    Direction: Long
    Breakout Level: 27.27,,,,,, Breakout date: Aug 28, 2024
    Entry Level: 29.16,,,,,,,,,,,,,, Entry Date: Aug 28, 2024
    Stop Loss: 26.95 (7.6%),,,, Profit Target: 44 (50%)
     
    Last edited: Sep 4, 2024
    #80     Sep 4, 2024