re:cup w/handle;How Are Technical targets Derived?
The technical target for a cup with handle pattern is derived by adding the height of the "cup" portion of the pattern to the eventual breakout from the "handle" portion of the pattern.
Cup and Handle Pattern for McDonalds Corp.
i cant get the image to paste so please check this link
it seems to me that the starting point on the calculation is where the breakout occurs, ie in the case of neph yesterday 1.06. and the distance from the bottom of the cup to the resistance point(1.06)vertically, is just added to the top of the resistance point to give a longer term price target. so in this case i still come up with 1.06 - 0.76 = .30 then .30 + 1.06 = 1.36 as a medium term projected target. i understand the value of only counting on 75% of this projection but i first think we all need to be on the same page as to how to project our targets.
Low can you give your expert explanation to help clarify for us all?
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