What is a cup & handle?

A Cup and Handle can be used as an entry pattern for the continuation of an established bullish trend. It´s one of the easiest patterns to identify. The cup has a soft U-shape, retraces the prior move for about ⅓ and looks like a bowl. After forming the cup, price pulls back to about ⅓ of the cups advance, forming the handle.

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 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.

What happens if a cup and handle dips below the top?

If the handle drops below the lower half of the cup, it is no longer a ‘cup and handle’ pattern. In most cases, the handle should not dip below the top third of the cup for it to be a cup and handle pattern. What is an ‘inverted cup and handle’?