What is a cup and handle chart?

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 first by a smaller drop and then a rise past the previous peak.

What is the inverted cup and handle pattern?

The Inverted Cup and Handle is the bearish version that can form after a downtrend. TradingView has a smart drawing tool that allows users to visually identify this pattern on a chart. The cup and handle pattern is a continuation chart pattern that looks like cup and handle with a defined resistance level at the top of the cup.

What happens if a cup and handle pattern is confirmed?

If a cup and handle pattern is confirmed, it will usually be followed by a bullish price move upward. You can pick a price target based on the size of the cup, but it becomes much less clear what will happen after the initial breakout from the cup and handle pattern.

What is a cup and hand pattern?

The CUP and HANDLE pattern occurs after a bullish trend. The cup forms a round bottom and the price comes back to the previous peak. Then, the HANDLE zone is formed with a small descending period. It is expected that, after this pattern, a strong UPWARD movement will come.