Glossary › cup and handle

Trading glossary · patterns

cup and handle

A chart shape like a teacup from the side: a round dip, a small dip for the handle, then a jump above the cup's top.

The fuller meaning

A bullish continuation pattern: a rounded dip and recovery (the cup) back to the prior high (the rim), a small pullback (the handle), then a close above the rim, which completes it. Traders like rising volume on the break; like any pattern it can fail after the breakout.

cup and handle.

Related words

apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · descending triangle