Cup and Handle Pattern: Should You Buy When the Handle High Breaks? Calculating the Pivot Price and Spotting False Breakouts
In a cup and handle pattern, the price typically used as a buying reference is the pivot price, calculated by adding 1 minimum tick to the handle's highest price. However, simply moving above the pivot does not mean all the conditions for buying have been met. You also need to examine the handle's depth, breakout volume, relative strength, and overall market conditions to assess the risk of failure. This is especially important in the Korean stock market, where