Cup and Handle

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The cup and handle is one of the most common chart patterns you'll see, and can be used to predict future price movements. The pattern has two parts: a "cup" (which forms at the bottom of an uptrend) and a handle (which forms near the top).

The cup is created by several weeks or months during which prices dip lower than they were during previous periods. The depth of this dip determines how far down into your chart you need to go before identifying it as part of your pattern; generally speaking, though, if you have less than 10 years worth of data available then start looking around where those 10 years begin--so for example if your data goes back only 5 years then look at what happened between 2008-2012 instead because that's where most people would consider their first decade ended!

Once this downward trend has been established we then wait for prices to begin rising again until they reach approximately halfway up from where they started dipping down from initially -- this point marks our "handle".

The cup and handle pattern is a bullish reversal pattern that is used to identify potential buying opportunities in the financial markets. It is formed by a "cup" shaped pattern followed by a brief downward movement, or "handle," before the price continues to move upward.


The cup is formed by a U-shaped pattern on the price chart, where the price moves down and then up over a period of time. The handle is a downward price movement that lasts for a brief period and is usually followed by a break higher and a continuation of the upward trend.

Traders look for the cup and handle pattern as a potential buying opportunity, and will typically enter a long position when the price breaks above the resistance level formed by the top of the handle. Like all chart patterns, it's important to use the cup and handle pattern in conjunction with other forms of analysis, such as technical indicators and fundamental analysis, and to be aware of the potential for false signals.


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