one needs to go back 2 years to see the c+h formation. my observations:
it is surprising how many c+h formations have evolved over the past year or so, particularly among tmt stocks. it is a rather understandable state of affairs. so many valued stock in the tmt sectors have been hammered down as became tarished with the same brush as the rest. now better times have befallen upon us and the general fear dessipated these stocks are making comebacks with vengence.
in the afa case both of cup and handles are too shallow. i am not aware of any prescriptions as to the sizes and shallowness of cup or handle. one thing is certain though, the cycle will be slow due to the shallowness of the curves. the way i see c+h working in principle is in the form of cycles repeated at ever higher levels and at shorter wavebands, the handle lies at a generally higher level that the cup and is smaller than the cup and would complete over a shorter time than the cup. this latter interpretation is purly mine though.
having said the above, the market since the bubble burst has been so sever that it may significantly distort standard configurations.
and yes, in ta geometry is used to extrapolate future patterns and levels as a main tenent of ta is that the past repeats itself, although due allowances have to be made for change.
