In the domain of technical analysis of market prices , a cup and handle or cup with handle formation is a chart pattern consisting of a drop in the price and a rise back up to the original value, followed a smaller drop and a rise past the previous peak. The cup part of the pattern should be fairly shallow, with a rounded or flat "bottom" not a V-shaped one , and ideally reach to the same price at the upper end of both sides.

Cup and handle - Wikipedia

For stock prices, the pattern may span from a few weeks to a few years; but commonly the cup lasts from 1 to 6 months, while the handle should only last for 1 to 4 weeks. The "cup and handle" formation was defined by William O'Neil " [2] [4].

A cup and handle formation is considered significant when it follows an increasing price trend , ideally one that is only a few months old. The older the increase trend, the less likely it is that the cup and handle will be an accurate indicator.

The trade volume should decrease along with the price during the cup and should increase rapidly near the end of the handle when the price begins to rise.

From Wikipedia, the free encyclopedia. Retrieved 28 June A Winning System in Good Times and Bad".

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How To Trade The Cup And Handle Chart Pattern For Maximum Profit

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Chart Broadening top Cup and handle Double top and double bottom Flag and pennant Gap Head and shoulders Island reversal Price channels Triangle Triple top and triple bottom Wedge pattern. Simple Doji Hammer Hanging man Inverted hammer Marubozu Shooting star Spinning top.