The Saucer Bottom is a very slow developing pattern that does nothave a clear entry point in most cases. It becomes the foundation for along term uptrend, but it often gives no direct signal to buy. Thesaucer represents a gradual loss of momentum in a downtrend, followedby consolidation in a sideways market, and an eventual return of thetrend higher. A saucer may only be visible on a weekly chart, becausethe time it takes to develop is so long.
Because the saucer offers little in the way of a precise signal toenter a trade, and because it operates over such a long period of time,it is necessary to rely on other technical analysis to determine anentry point following a saucer formation. The saucer simply provides afoundation for a further move upwards, letting the trader know that thelong-term bias will likely be to the upside.
One exception to this is the cup and handle pattern, which isdemonstrated fairly closely above in the large saucer followed by asmaller saucer at the same horizontal level. In this case, once thesmaller handle breaks above the high point at the end of the firstsaucer, a buy signal is generated. This pattern does not use any newprinciples, rather it is based on the relative high as a resistancelevel and the price breaking through resistance signaling a buy.