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Cup pattern :
It is an accumulation characteristics pattern and decoupled from the market.
It is very strong pattern and it takes long time to construct.
During the cup forming,volume to be low.
It is the best pattern for long term investment.
Cup pattern is accumulation pattern where the buyers are not so aggresive.thus the volume is expected to be low.the shares are bought at the price when it is comfortable to buy..hence it takes long time to form a cup.long position is created by the investor
Conditions
Volume must be low
Duration must be long
The cup pattern is a accumulation pattern where it shows a very slow and very gradual turn from down to sideways to up.
Cup pattern are usually spotted on weekly or monthly charts that span several years.The longer they last,the more significant they become.
Rounding pattern or cup pattern is a type of accumulation pattern. These patterns are generally powerful if it takes long time to construct. In this pattern, the stock leads its own path and is not affected by market conditions. During the rounding bottom, the volume is at the lowest. The duration for cup formation is minimum of 1 to 1 1/2 years.
The rounding pattern is formed like a cup over a long period of time. The price hovers around a specific range irrespective of the price movement of its sectoral index or the market index indicates that there is strong and buy happening for the stock. After the cup is formed, there will be a small handle formed and once the price raises above the top of the cup, it is the beginning of a bullish trend.
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