One of my core beliefs as a swing trader is that a successful trading strategy should be simple to follow.
While hundreds of different types of chart patterns exist, experience has taught me that being laser-focused on just a few patterns makes the overall best stock trading strategy.
In a bull market, many of the Morpheus daily stock picks are based on the cup and handle chart pattern.
The cup and handle pattern is quite popular among technical traders for three reasons:
- It is quick and easy to spot the chart pattern while scanning stocks.
- In typical neutral to bullish markets, plenty of cup and handle patterns are continually formed.
- In terms of follow-through, the cup and handle is one of the more reliable chart patterns.
Below, Sasha Evdakov presents an excellent trading video on how to trade the cup and handle pattern in under four minutes.
I’m pleased to share Sasha’s video with you, and I think you’ll enjoy it too.
Jump to 0:14 to skip the intro text if you like:
In addition to the cup and handle pattern, another bullish trade setup we target is stocks breaking out of flat bases of consolidation.
You can learn more about buying flat base breakouts, as well as our exact rules for trading the cup and handle, here.
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Deron – founder @ Morpheus Trading Group