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The article will explain how to read the reverse cup and handle pattern on the price chart, and how to use it in different trading strategies.
There are many technical indicators that are used by traders to estimate the price direction of an asset. Some indicators are based upon the price patterns. The cup and handle is the prime example of such patterns. Although the pattern was originally used in the stock and Forex markets, it later came to be used in the cryptocurrency market.
The Cup and Handle pattern occurs when a pronounced, rounded bottom resembling a cup is formed on the price chart. The handle of the cup has a small decline
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