Forex Chart Formation Patterns_12. Learn Forex Inverse Cup and Handle Pattern

Lesson 12: Learn Forex Inverse Cup and Handle
Pattern

A bearish continuation pattern is observed in the case of an inverse cup and handle
pattern. It consists of inverse U-shaped price action as the cup - and a small but
sharp advance at the support that resembles the handle.
Referring to the chart, you can see in a down-trend, that the price has set support.
As it goes into the consolidation phase, the price retraces higher. When the price has
fallen down to test the support, set by the first low, it will rally higher because the
people who’d sold it at the first low, will try to liquidate their positions as close to the
break-even point as possible.

The best time to enter the market is when the price has broken support and is at the
bottom of the cup; you should target the height of the formation from the breakout
point.