Trading The Cup With Handle

When successfully identified, the Cup with Handle formation can give you that "head start" you need to get in on the ground floor of a potentially explosive stock. With the right timing and the right tools, isolating and monitoring these stocks can provide that investment edge.                       

 The Cup with Handle is formed during a period of consolidation. The left side is defined by increased volume and price activity. This is followed by investors taking a profit which causes the price to fall, thus creating a base which is sustained for a period of time.

Institutional buying causes the price to rise, forming the right side of the cup in strong stocks. As the price rises, timid investors view this movement as an opportunity to exit the market. The bar with the highest close during this "market upturn" is the bar making the Right Side (RS) of the cup. The Close on the Right Side is the Pivot Point. This provides the optimum point to make an entry. 

Either manually, or using our Cup Trade Strategies Software the Pivot Point plus 8 cents is where the Savvy Trader executes a Buy. When you receive the CupAlert via email telling you your stock is getting close to breaking out it's time to take action. If you are manually making your trades you need to be ready to place your order as soon as the price crosses the Pivot Point Price plus 8 cents. If you are using the CupTrade Strategies software you need to load the appropriate strategy into the stock chart and set back and watch it make the necessary trades for you automatically.

At DEL Associates, the RED DOT indicates the Close on the Bar that is formed on the day the stock Broke Out.

You will also select an Automatic Stop Loss percentage.   We usually recommend 7%.     This will get you out if the stock goes against you.

In a Bull Market Cycle the #CupTradeLE strategy is extremely effective.    Using our proprietary software we ride the stock up until it meets the criteria of one of our proven exits at which point the system automatically sends a sell order to get you out of the market.  We also have systems to handle Bear Markets as well as the Up and Down Transition Market cycles.  Our Training materials will cover all these strategies.

In reality, it only takes a few “High Performing Stocks” to achieve your financial dreams. Our mission is to help you: identify them, buy in low and sell out high.   When the stock goes against you, your 7% stop loss gets you out.   When your stock is performing well, your gains can be in the hundreds of percent.  Impressive and true.

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