Part 3: Trading Cups and Shoulders

Volume : Trading volumes decline during the cup formation, indicating a decrease in selling pressure. How to Confirm the Cup and Handle Pattern :Pattern Structure: Ensure that the cup and handle pattern follows the characteristic structure. Volume Trend: Following a breakout, observe the volume trend. What are the Indicators of the Head and Shoulders Pattern? Volumes: Trading volumes tend to increase during the left shoulder formation and head formation, and then decline during right shoulder formation.