A bullish continuation pattern (best known in stocks, but the concept applies generally).
- Cup — a rounded "U"-shaped correction, not a sharp "V".
- Handle — a small correction after the cup, usually a flag/gently falling channel near the right rim of the cup.
- Trigger: a break of the cup's rim / the top of the handle.
- Target: the depth of the cup projected upward from the breakout point.
Key points
- A rounded cup shape indicates a healthy distribution of selling pressure.
- A handle that is too deep (more than half the cup) weakens the pattern.
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