The formations of "Cup & handles" as well as "Head & shoulders" are just visual ways to describe what the market is doing to be efficient.
The market's efficiency of course runs on the basic concept of supply & demand - but in order for that to happen efficiently, we need to constantly fight it out on multiple time frames to remove a certain side and then replenish at lower and higher levels.
In DPZ's case, we are looking to shake off buyers (built up at the $400 support level) in order to re-introduce newer and larger buyers at lower levels - subsequently replenishing buyers while also 'trapping' sellers.
This constant game of cat and mouse happens throughout all time frames - and is a big reason why most traders feel like they are constantly losing and that the market is against them - because it is!
Enough of the lesson - my thesis here is the market is intentionally building a large support base in order to break through, lose buyers (stopped out), trap sellers, and give the opportunity to big money to enter positions at attractive prices.
Target Entry: $380
Target Exit (Short term): $450
Target Exit (Long Term): $530
Happy Trading :)
The market's efficiency of course runs on the basic concept of supply & demand - but in order for that to happen efficiently, we need to constantly fight it out on multiple time frames to remove a certain side and then replenish at lower and higher levels.
In DPZ's case, we are looking to shake off buyers (built up at the $400 support level) in order to re-introduce newer and larger buyers at lower levels - subsequently replenishing buyers while also 'trapping' sellers.
This constant game of cat and mouse happens throughout all time frames - and is a big reason why most traders feel like they are constantly losing and that the market is against them - because it is!
Enough of the lesson - my thesis here is the market is intentionally building a large support base in order to break through, lose buyers (stopped out), trap sellers, and give the opportunity to big money to enter positions at attractive prices.
Target Entry: $380
Target Exit (Short term): $450
Target Exit (Long Term): $530
Happy Trading :)
Trade the Story
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Trade the Story
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.