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Trading and Investment Terminology

Cup and Handle Pattern

It was developed by William O'Neil and introduced in his 1988 book, How to Make Money in Stocks.

 

The cup and Handle pattern is one of the most important chart patterns to make money in the stock market.

 

A ‘cup and handle’ is a chart pattern that can help you predict future price movements. 

  • It gets its name from the teacup shape of the pattern. 
  • It is considered one of the key signs of bullish continuation, often used to identify buying opportunities.

Detailed

  1. Firstly, it does not occur within a specific timeframe. Sometimes it forms within a few days.
  2. Secondly, you need to learn to identify the length and depth of a true cup and handle, as there can be false signals. 

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