Inverse Cup (Cup & Handle Top)
Definition
An upside-down rounded top with a small upward handle, then breakdown.
Psychology
Price rounds over at the top, takes a small breather up, then breaks lower.
Real-life analogy
💡 An umbrella dome: a smooth arch up and over, a small bump, then the drop.
Expected direction
down
Entry / Stop / Target
Entry: On a breakdown below the handle. · Stop: Above the handle high. · Target: Dome depth projected down.
Historical behaviour
Less common; treat with extra confirmation.
Illustrative success rate
~58-65% on breakdown · Medium reliability
Common beginner mistakes
- • Confusing with a normal pullback
Quick quiz — did you understand?
1. Is the Inverse Cup (Cup & Handle Top) generally considered bullish, bearish, or neutral?
2. After a confirmed Inverse Cup (Cup & Handle Top), the expected direction is usually:
3. Which is a common beginner mistake with the Inverse Cup (Cup & Handle Top)?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.