Cup And Handle

What is a Cup and Handle?

Cup and Handle Definition:

In Technical Analysis, a cup and handle  is a bullish continuation or reversal chart pattern where the formation resembles a “cup with a handle to its right.” Here, the price gradually falls after marking a certain high before moving up again in a similar pace. The price, though, weakens again and forms a “handle” on the top half of the “cup” before breaking out. In general, a price target is set by projecting the height of the cup from the point of breakout.

Continuation:

cup and handle (continuation) chart pattern

Reversal:

cup and handle (reversal) chart pattern