What is a cup and handle chart?

This pattern can occur both in small time frames, like a one-minute chart, as well as in larger time frames, like daily, weekly, and monthly charts. A cup and handle chart usually signals a bullish continuation pattern. A continuation pattern occurs during an uptrend; the price rises, forms a cup and handle, and then continues rising.

How long does a cup & handle pattern last?

The first example shows a shallow cup and handle pattern developing over the course of approximately two to three months. The cup features a gentle pullback after a strong bullish movement and the right side of the cup reaches the same price level as the left side of the cup.

What happens if a cup & handle chart dives too deep?

If the handle dives too deep and erases most of the gains of the cup, you should avoid trading the pattern. This pattern can occur both in small time frames, like a one-minute chart, as well as in larger time frames, like daily, weekly, and monthly charts. A cup and handle chart usually signals a bullish continuation pattern.

How do I scan for a cup and handle pattern?

To scan for a cup and handle pattern, you can use manual charting techniques to look for the U-shape pattern in a stock’s price action. You can also use automatic screeners such as TC2000 to look for the pattern. Our daily swing trading report, The Wagner Daily, also highlights top cup and handle patterns as they develop.