the hAnDbook of teChniCAl AnAlysisover longer periods as compared to other chart patterns. The minimum upside
price target is simply a one‐to‐one price projection based on the greatest height
within the cup and handle formation, measured from the breakout at the handle.
See Figure 13.57.
Using apex reaction analysis to forecast potential
price activity
Price tends to react strongly at time lines associated with triangle apexes. Although
this technique is fairly consistent in predicting a price reaction, it does not provide
any directional information whatsoever, that is, it cannot forecast from which di-
rection price will traverse at the apex reaction time line. See Figure 13.58.
figUre 13.57 Cup and Handle Formation on the 4‐Hour Chart of EURUSD.
Source: MetaTrader 4
figUre 13.58 Projected Time line for an Apex Reaction.