How reliable is the Cup and Handle technical indicator on indices, specifically in the long term (2+ years)?
I'm analysing the S&P 500 bullish case and one thing immediately clear is this formation (not validated), which historically is a bullish signal.
The cup and handle is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern's formation may be as short as seven weeks or as long as 65 weeks.
The S&P checks all the consideration points on the Cup and Handle pattern however it's noted that the formation may not exceed 65 weeks. As the formation began in Jan of '22, we have crossed the 94 week. So it would seem this would be automatically invalidated. Is that so? Has anyone had experience with long-term patterns such as this?
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