The key for traders is to watch for a confirmed breakout of the rounding bottom, ideally with high volume. If no immediate breakout happens and a pullback occurs, traders should stay alert for the formation of a cup and handle, which could signal an even stronger continuation of the bullish trend.
Both outcomes—whether a breakout or the formation of a cup and handle—are bullish signals, but understanding the pattern fully can help traders position themselves more effectively.
Both outcomes—whether a breakout or the formation of a cup and handle—are bullish signals, but understanding the pattern fully can help traders position themselves more effectively.
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