Inverse Cup Handle and Elliot Wave 1-2 Difference

I hope you know what is cup and handle pattern. If you  do not know then visit this link.
Here I am talking about Inverse Cup and handle that is the opposite of Cup and Handle Patten.


We should carefully check that, the second low should be lower than the first low of the Inverse cup. If this happens then it removes probability of Elliot wave formation because it violate the rule one i.e. Wave 2 should not retrace more then 100% of wave 1.


Valid Inverse Cup and handle:




Invalid Inverse Cup and handle:

If we consider this as Inverse Cup and Handle pattern  and you are hoping that price will go down then you are wrong because Clearly it is  forming the Elliot wave. The move that you considering the handle of cup is the starting of wave 3.







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