V.13:07 (311): SIDEBAR: Cups and caps by Thom Hartle

V.13:07 (311): SIDEBAR: Cups and caps by Thom Hartle
Item# \V13\C07\SIDECUP.PDF
Availability: In Stock

Product Description

V.13:07 (311): SIDEBAR: Cups and caps by Thom Hartle

Cup and cap patterns are technical formations used to signal short-term trades. The cup pattern is the basis for a sell signal when the instrument being traded is in an uptrend, while if the instrument is trading in a downtrend, then the cap pattern is the setup for a buy signal.

First, the direction of the trend is identified, and then the cup and cap patterns are used for the trading signals. The trend is determined by using a pattern called the three-bar net line. Before discussing the cup and cap formations, let's look at how the three-bar net line is identified and used to determine the trend direction.

The three-bar net line is calculated by starting with the current trading day. If the market is rising, making a series of higher highs preceded by higher lows, locate the day with the highest high. The low of this day will be day 1. Look to the left on the chart and find the previous low that is equal to or lower than day 1. That bar becomes day 2. From day 2, compare this low to the preceding low that is equal to or lower than day 2. That bar becomes day 3. ...

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order