The Cup and Handle is a bullish chart pattern that signals a potential upward move in price. It looks like a “U” shape (the cup) followed by a small dip (the handle), before breaking out upward.
Key points:
- Bullish pattern: Suggests the price may rise.
- Cup: A rounded bottom formation.
- Handle: A small downward movement.
- Breakout: Price moves up after the handle.
- Place a stop-loss below the handle for protection.