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Trading Terms

Scallop

One of the key concepts in finance is the cup and handle pattern that occurs in chart formations. This occurs when the price momentarily dips, forming a cup-like shape, before continuing its upward trend. This pattern is often seen as a signal of a potential uptrend in the price of a security. As a knowledgeable finance professor, it is important to understand this pattern and its implications for making informed investment decisions. Let's delve deeper into this concept and explore its significance in the world of finance.
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