Cup And Handle?
Updated
A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.
A cup and handle is considered a bullish signal extending an uptrend, and 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.
The Bottom Line
William O'Neil's strict requirements for the cup and handle pattern more than 20 years ago can be now expanded into various market scenarios in multiple time frames. This broader view allows us to shift attention from the classic pattern's standard definition, toward a narrow focus on crowd psychology that underpins its power to predict sizable breakouts. And to learn more, check out the Technical Analysis course on the Investopedia Academy, which includes videos and interactive content to help you recognize these chart patterns and improve your trading skills.
Not a financial advice. Do Your Own Research (DYOR)
A cup and handle is considered a bullish signal extending an uptrend, and 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.
The Bottom Line
William O'Neil's strict requirements for the cup and handle pattern more than 20 years ago can be now expanded into various market scenarios in multiple time frames. This broader view allows us to shift attention from the classic pattern's standard definition, toward a narrow focus on crowd psychology that underpins its power to predict sizable breakouts. And to learn more, check out the Technical Analysis course on the Investopedia Academy, which includes videos and interactive content to help you recognize these chart patterns and improve your trading skills.
Not a financial advice. Do Your Own Research (DYOR)
Note
Good Place to buy 0.95Not a financial advice. Do Your Own Research (DYOR)
Disclaimer
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