Cup and Handle
ChartA bullish continuation pattern forming a "U" shape (cup) followed by a smaller downward drift (handle). Very reliable.
Success Probability: 85%
Pattern Visualization
How to Identify
- U-shaped bottom (cup) lasting weeks/months
- Equal highs on both sides of cup
- Small pullback forms handle
- Breakout above handle triggers entry
Trading Tips
Very reliable continuation. Enter on breakout above handle. Stop below handle low. Measure cup depth for target.
A bullish continuation pattern forming a “U” shape (cup) followed by a smaller downward drift (handle). Very reliable.
Trading Strategy
Very reliable continuation. Enter on breakout above handle. Stop below handle low. Measure cup depth for target.
How to Identify
- U-shaped bottom (cup) lasting weeks/months
- Equal highs on both sides of cup
- Small pullback forms handle
- Breakout above handle triggers entry
Risk Management
With a 85% success probability, this pattern offers excellent reliability for trading decisions. Consider using larger position sizes within your risk parameters.