What is a cup and handle pattern?

A cup and handle pattern is a technical analysis indicator that occurs when the price chart for an asset resembles a U-shape with a horizontal line, generally drifting downward, like a teacup. It is a bullish continuation pattern which means that it is usually indicative of an increase in price once the pattern is complete.

What is a cup and handle trading strategy?

So here’s what you’ve learned in this Cup and Handle trading strategy guide: The Cup and Handle is a bullish reversal chart pattern which can signify the start of a new uptrend A common entry technique is to trade the break of the handle and go long You can set your stop loss 1 ATR below the handle so you don’t get stopped out prematurely

Is the cup & handle a reversal chart pattern?

The Cup and Handle is a bullish reversal chart pattern. This means it could be the start of a NEW uptrend and the last thing you want to do is cut your profit short. So what am I suggesting?

What is a cup & handle indicator?

A cup and handle is considered a bullish signal extending an uptrend, and it is used to spot opportunities to go long. Technical traders using this indicator should place a stop buy order slightly above the upper trendline of the handle part of the pattern.