Continuation · Bullish · High reliability
Cup and Handle Pattern Explained
Break above the handle rim after a rounded base forms.
What it looks like
A bullish continuation pattern that resembles a cup with a handle.
Multi-week bases on equities; handle should stay shallow.
Visual example
Illustrative geometry on ChartNox charts — not a live trade signal.
How to identify it
- Rounded bottom (cup) then a shallow pullback (handle).
- Handle should not retrace more than ~50% of the cup depth in textbooks.
- Break above handle rim can signal continuation higher.
When the read is wrong
Invalid if the handle retraces too deep or breaks the cup floor.
Common mistakes
- Accepting a V-shaped drop as a cup. The classic shape is rounded.
- Ignoring a deep handle. A handle that falls too far weakens the pattern.
- Calling it before price breaks above the rim.
Questions and answers
Is a cup and handle bullish?
It usually leans bullish, and it is read as complete when price breaks above the rim after the handle.
Which way does the handle go?
It is a small pullback after the cup, usually drifting slightly down or sideways near the rim.
Ask ChartNox AI about Cup and Handle
Open the tutor with this pattern pre-seeded. Educational coaching only — not a trade recommendation.
- How do I identify a Cup and Handle on a chart, step by step?
- What usually invalidates a Cup and Handle pattern?
- What mistakes do beginners make with Cup and Handle?