GLOSSARY

SCALLOP

31 May 2016 By PDSNET

Similar to the cup and handle formation, this chart formation occurs when price dips momentarily, forming a cup, before resuming its upward course. Typically bullish, the scallop form can be misleading in a downward trend, and must be read with caution. After peaking, the share often forms a handle or another scallop. A break upwards from this handle or second scallop constitutes a buy signal.

scallop formation
Scallop Formation



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