Cup and Handle

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Cup and Handle.

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.