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Definition

Similar to the cup and handle formation, this chart formation occurs when the 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.
<figure class="container-fluid"><img class="img-responsive" style="display: block; margin: 0 auto; max-width: 100%;" src="https://www.pdsnet.co.za/onlinecourse/img/glossary/scallop.jpg" alt="scallop formation" />
<figcaption style="text-align: center;">Scallop Formation</figcaption>
</figure>

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