We at DEL Associates Limited developed the Inverted Cup with Handle
indicator during the devastating Bear Market that ended in March 2003.
The regular Cup with Handle, as most technical indicators, does not
work well in a Bear Market. We use our CupScan™
software to scan the markets each trading day for both the Inverted
Cup with Handle and regular Cup with Handle formations and pass them
on to our subscribers.
One would think the Inverted
Cup with Handle works just the opposite of the Cup with Handle and we
would be entering the market by shorting stocks as they break out past
the pivot point to the down side. In an established Bear Market this
method works very well. However in a market moving sideways or upward
we need to change our methods somewhat. Most of our trades are made
by using long positions as opposed to entering short positions. For
the most part these are trades that last for only a few days. Day and
Swing Traders have good success with the Inverted Cup with Handle.
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