Cup and Handle
Also known as: Cup with Handle
A rounded base (cup) followed by a small consolidation (handle). When price breaks above the handle, the uptrend usually continues.
How it forms
First a U-shaped cup, then a slight pullback at the right rim in a narrow down-channel (the handle) with declining volume. The handle is the last breather before the breakout.
How it is typically traded
On a break above the upper handle boundary, ideally with volume.
The depth of the cup, projected upward from the breakout point.
Below the low of the handle.
Where & when – and the limits
Classically bullish, usually as a continuation in uptrends. A handle that is too deep (below the cup's midpoint) weakens the pattern. Patience: the cup needs time.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
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