Cup and Handle
A bullish pattern shaped like a teacup: a rounded dip, a recovery, a small pullback (the handle), then a…
In plain English
A bullish pattern shaped like a teacup: a rounded dip, a recovery, a small pullback (the handle), then a possible breakout.
The cup and handle, popularised by William O'Neil, starts with a rounded U-shaped dip and recovery: the cup. Then price drifts down a little: the handle. A break above the rim is the signal.
The rounded bottom suggests sellers ran out slowly rather than in a panic. It is better known in stocks but appears on any chart.
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