|
1. A pattern that is formed after a pullback from a swing low sells off strongly
to the prior swing low and stalls due to underlying support. The security then stalls
much like a bear flag with slight upward pressure before breaking down below support.
2. The power of an Inverted Cup and Handle lies in the fact that after hitting
underlying support from the prior swing low, a very minor correction is put in.
The stock then breaks down past support which can be a sign that overhead supply
in the security may be increasing.
3. Inverted Cup and Handle patterns can be stronger when the next logical
place of support on the chart after the breakdown is a considerable distance away.
|
