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Home / Technical Analysis / Chart patterns / Cup and Handle

Chart pattern · Continuation · Bullish

Cup and Handle

What is it, in one line

A rounded cup followed by a shorter shallow pullback, the handle, before the prior advance resumes.

Bullish · Continuation · verdict: Traditional claim, not yet measured here

Bullish Continuation Traditional claim
Schematic · the live site draws this from the rule

Formation rule

A rounded cup followed by a shorter shallow pullback, the handle, before the prior advance resumes.

Method

Target and invalidation

Conventional target: A break above the handle’s high projects a rise equal to the cup’s depth.

Invalidated by: A handle that retraces more than roughly a third of the cup invalidates the pattern.

Traditional claim, not measured

This is the standard technical-analysis interpretation. It has not been tested against our dataset the way the candlestick formations have.

All 18 chart patterns →

Other continuation chart patterns

All 18 →
Ascending Triangle A flat resistance line with a rising support line, compressing toward the top.
Descending Triangle A flat support line with a falling resistance line, compressing toward the bottom.
Symmetrical Triangle Converging trendlines, one falling and one rising, with no directional bias until the break.
Bull Flag A sharp advance, the flagpole, followed by a brief, shallow, downward-drifting consolidation.

Size a trade on this setup before you take it.