Cup and Handle

100patterns.com Cup and Handle pattern Bearish 100patterns.com Cup and Handle pattern Bullisch

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The cup and handle is a bullish continuation chart pattern signaling potential upward breakout. It resembles a teacup: the “cup” forms a rounded bottom after a downtrend, indicating consolidation, while the “handle” forms a slight pullback. A breakout above the handle’s resistance suggests renewed buying momentum. Traders use it to anticipate price increases with measured move targets.

Bullish

Performance
60%
Target hit rate
50%
Rejection
58%
Average Gain
34%

Bearish

Performance
44%
Target hit rate
27%
Rejection
42%
Average Gain
23%

Side Note

Taller patterns with short handles and a higher left cup lip tend to perform better.

How to trade

Set a stop-loss order 0.15 below the handle to minimize potential losses. As prices increase, adjust the stop to breakeven or slightly below the closest support level.

Variants