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What exactly is a stock? -If you purchase stock in Google, you own a small fraction of Google. -When you purchase stock, you’re buying a piece of the company. -People buy stock in order to invest -Companies sell stock in order to gain revenue (money to build/grow the company) Example -A person starts a candy
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Cup and Handle Pattern: -It is a continuation pattern. -Discovered in 1988 by William O’Neil. I recommend his book How to Make Money in Stocks. -You need a previous trend in order to have a continuation pattern. -When the pattern trickles down the “handle” the volume will be slowly declining. -Once it breaks the “handle,”
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