Learning Hub

Cup & Handle

bullish

Definition

A rounded 'cup' base followed by a small downward 'handle', then breakout.

Psychology

Price slowly recovers in a U shape, takes a small breather, then breaks higher.

Real-life analogy

💡 A teacup: a smooth U, then a small dip on the right (the handle) before the pour upward.

Expected direction

up

Entry / Stop / Target

Entry: On a breakout above the handle/rim. · Stop: Below the handle low. · Target: Cup depth projected up from the breakout.

Historical behaviour

A well-known bullish continuation, especially in trending markets.

Illustrative success rate

~60-68% on breakout · Medium reliability

Common beginner mistakes

  • Forcing a V-shape into a cup
  • Accepting a too-deep handle

Quick quiz — did you understand?

1. Is the Cup & Handle generally considered bullish, bearish, or neutral?

2. After a confirmed Cup & Handle, the expected direction is usually:

3. Which is a common beginner mistake with the Cup & Handle?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.