What is a cup and handle breakout?

When he coined the term, O’Neil pointed to four stages in a cup and handle breakout : The security posts a significant high in an uptrend that accelerated between one and three months prior. The next pullback carves out a rounding bottom no deeper than the 50% retracement of the prior trend.

What is a cup with handle retracement?

The cup is a bowl-shaped consolidation, and the handle is a short pullback followed by a breakout with expanding volume. A cup retracement of 62% may not fit the pattern requirements, but a particular stock's pattern may still capture the essence of the Cup with Handle. Trend.

What is the cup & handle pattern?

One of the most important chart patterns in the stock market is the Cup and Handle Pattern, invented by William O’Neill. Sometimes you might see it abbreviated as CWH. It also holds the crowd proclaimed title as one of the most profitable and reliable breakout patterns. The Cup and Handle Pattern forms as a bullish...

Is Cup and handle a bullish signal?

The standard cup and handle pattern is a bullish signal, but there is also a bearish version of this pattern called “Inverse Cup and Handle” pattern. An inverse cup and handle pattern forms with the bottom of the cup being at the top of the stock’s price movement.