Stocks with Cup and Handle Pattern
↑ BullishThe Cup and Handle pattern is one of the most reliable bullish continuation patterns in technical analysis. It forms when a stock's price creates a rounded bottom (the cup) followed by a smaller consolidation (the handle) before breaking out to new highs. The pattern typically takes weeks to months to form on a daily chart.
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Frequently Asked Questions
What is a Cup and Handle pattern?
A Cup and Handle is a bullish chart pattern that resembles a tea cup. The price drops, forms a rounded bottom (cup), recovers to the previous high, then pulls back slightly (handle) before breaking out upward.
How do you trade a Cup and Handle?
Traders typically enter a long position when the price breaks above the handle's resistance with increased volume. The price target is often calculated by adding the cup's depth to the breakout point.