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This pattern is similar to the rounded bottom, the only difference is once the rounded bottom is complete you then find the price retreats a little then goes sideways then goes up again.

This creates the handle, the buy signal comes when the resistance is broken, the point where the peaks are joined together and formed the cup and handle.




The target is taken from the bottom to the top which then is projected from the break out point.


Please click on the chart below for larger image