The mirror that is rarer than it looks

What the Lesson Covers

1. 0:00Turn a cup and handle upside down and you get a shape that is far rarer than it looks.
2. 0:06The shape. A rounded top rather than a spike, a decline back to a prior low, and a small quiet drift above that low before it is tested.
3. 0:17Why it forms. The old low is where the last buyers bought. The handle is the last of them showing up again, and it ends when they stop.
4. 0:27The levels that matter. The rim, the top of the dome, and the high and low of the handle. The rim is the only price the market cares about.
5. 0:37Where it completes. A close below the rim completes it. Above the handle's high the demand the pattern said was exhausted is plainly still there.
6. 0:48How often it follows through. Sixty to sixty-five, the lowest band in the breakout group, because genuine examples are scarce and imagined ones are not.
7. 0:57The same shape failing. Here the handle becomes a rally. A higher high, then another, and months of structure resolve in the wrong direction.
8. 1:08The tells. A handle above a third of the dome, handle highs forming a sequence, or heavier volume on the up bars.
9. 1:18Distribution is messier than accumulation. Most domes are not domes.