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How To Identify High Caliber Trades Using Pattern Recognition: CYDY

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The Cup & Handle base formation does a good job of identifying stocks before they come out.

Multiple patterns stack the odds of a successful trade in your favor.

CYDY is a biotech that shows a Cup & Handle within a Cup & Handle.

The following daily CYDY shows that the Handle of a 7 month Cup and Handle is actually a smaller Cup & Handle, a fractal of the larger pattern.

Notice that all the action in 2021 where CYDY has been working on its Handle is taking place above the rising 50 day moving average.

On Thursday, Feb 11, CYDY left an outside up day.

Breakage above the 7 region opens the door to 9.

Why?

Using my Square of 9 Wheel, I start with the recent swing low of 4.25 and move the decimal point to get 42 to capture higher frequency moves in lower-priced titles.

The square of 9 below shows that 7.10 is 1 full square of 360 degrees up (green) with both aligning with February 11 (blue).

Square-outs can be lows, highs or accelerations.

CYDY looks set to accelerate above 7.

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