The Second Cup trade
The most reliable trade I have found is the second cup, also known by me as the "W" for Win, Cup and Handle, Double Bottom, Double V. These are all variations of the same trade. (Video 1)
The market or the Stock can gap up or down, doesn't matter.
1 or 2 minute charting time frame.
Indicators: 9 ema (red line, irrelevant), 20 sma (green line), VWAP (purple line).
20 sma, VWAP, bunched close together near current price.
Cup: Bottom of the second cup must be even with or higher than the bottom of first cup. Shallow cups are best.
Volume: at least 70k per minute.
Protective Stop: under the second cup.
Entry: over the inside bottom of the second cup or over the 20 sma.
1st target is just before the top of the 2nd cup; sell 1/2 of your share size.
Expect a pullback to the 9 ema or 20 sma after hitting 1st target.
2nd target is about twice the height of the 2nd cup itself; sell 1/2 of what's left, so you have 1/4 of the original share size left after this sale.
Stock a should now stay above the 20 sma until the trend is over.
Move the stop loss up underneath each pull back as the trade progresses upward, each time it makes a new high.
Once the trade reaches the 2nd profit target, you can stop out the remainder of the position underneath the 9 ema or 20 sma.
Adding Shares: You can double the number of shares you currently hold each time a green candle supersedes a red candle in the up trend after a bounce off the 20 sma. Entry should be about halfway up the pullback and the overall uptrend remains stable above the 20 sma.
Keep your stop under the 20 sma.
Do not add after 3 waves up or after a strong quick surge to the upside.