I don’t trade this pattern. I personally find it hard to identify and subjective. But seems like a lot of people are using this for their trading. Saw many successful cup and handle setups on Twitter before.
Any pattern can be traded, especially horizontal ones where essentially it's a line in the sand with defined risk/reward. You can almost pick any point in time and do the same. Just a matter of probabilities. Same can be said for ORB, ranging markets, etc...for horizontal strategies. It's a lot harder on diagonals (diagonal H&S vs a clean horizontal one)...Schabacker covers this in his books and others.
I see that two its subjective but that's why you have to play your signal and strat with determined risk/reward. its a long game but strat should be consistent and back tested im really liking and back test the reversal indicator signal strategy having great success looking to take it live soon myself but its all about discipline and rules stick with your edge consistency is key its a game of percentages overall. I would take it on neck break with break as SL maybe little below it but its all subjective to account size and tolorence.
@korygill CRM is a once high flying stock that hasn't been able to get moving again. Take a look at it on a one year chart.
Next, notice that the cup is not 7 weeks long, which I believe is the minimum. Then the handle is too long and the volume doesn't really dry up..
I play by probabilities as well. If you look at this whole software group, you will see the once leading stocks breaking down. PAYC is the #1 stock per IBD and it has been trashed. No doubt that CRM is an excellent company, but my sense is that without support of the rest of the software group, it will not get very far if it does pop up.
On the other hand, I've been told I was wrong three times today. After all of that, sorry I'm not much help but I would be surprised if it popped up any time soon. Not Investment Advice!