A bullish trading signal where a security’s price chart shows an elongated “u” shape followed by a slight downward drift (forming a shape resembling a cup with a handle). Generally, cups with a longer “u” bottom provide a stronger signal of a coming uptrend and sharp “v” bottoms should be avoided. The pattern was first identified by William O’Neil as a consolidation period followed by a breakout.
Cup and Handle
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Cup and Handle.