In the domain of technical analysis of market prices, a cup and handle or cup with handle formation is a chart pattern consisting of a drop in the price and a rise back up to the original value, followed a smaller drop and a rise past the previous peak. The cup and handle pattern is one of the oldest chart patterns you will find in technical analysis. In my experience, it’s also one of the more reliable chart patterns, as it takes quite some time for the formation to setup. Cup with Handle: Example. The figure on the right shows an example of a cup with handle chart pattern. The rise leading to the cup with handle begins at C and reaches the left cup lip at point A. Since this is on the weekly scale, the price chart appears narrower than usual, but price rounds downward forming a cup with the right cup lip at B. The handle lasts a few weeks before price begins moving up. Let's take the cup with handle fashioned by Baidu ( BIDU) (see the chart below) in 2007. In the cup base, the high was 134.10 and the low was 92.80. Add the two prices together and divide by 2 and you get a base midpoint of 113.45. The handle showed a high of 132.80 and a low of 120.25,
23 Jan 2019 There seems to be a surprising link between the annotated interpretation of the charts (I've and so drank half a cup, by little sips, making shift to praise it faintly much of it sounds like post-hoc justification or pattern-seeking. A cup and handle price pattern on bar charts resembles a cup and handle where the cup is in the shape of a "U" and the handle has a slight downward drift. A cup and handle is considered a bullish A cup and handle chart may signal either a reversal pattern or a continuation pattern. A reversal pattern occurs when the price is in a long-term downtrend, then forms a cup and handle that reverses the trend and the price starts rising. A continuation pattern occurs during an uptrend; the price is rising, forms a cup and handle, and then continues rising.
23 Jul 2015 The cup and handle pattern is one of the oldest chart patterns you will find in technical analysis. In my experience, it's also one of the more What is the Formation of a Cup and Handle Pattern? A cup and handle is a chart pattern which is formed by a decline and then subsequent rise in price back to
28 May 2018 After forming the cup, price pulls back to about ⅓ of the cups advance, forming the handle. The full pattern is complete when price breaks out of 25 Jun 2010 As the 'handle' of the cup and handle chart formation formed, it slowly yielded enough points to finally place 'the lid' on the cup and hand, and 23 Jan 2019 There seems to be a surprising link between the annotated interpretation of the charts (I've and so drank half a cup, by little sips, making shift to praise it faintly much of it sounds like post-hoc justification or pattern-seeking. A cup and handle price pattern on bar charts resembles a cup and handle where the cup is in the shape of a "U" and the handle has a slight downward drift. A cup and handle is considered a bullish A cup and handle chart may signal either a reversal pattern or a continuation pattern. A reversal pattern occurs when the price is in a long-term downtrend, then forms a cup and handle that reverses the trend and the price starts rising. A continuation pattern occurs during an uptrend; the price is rising, forms a cup and handle, and then continues rising. Cup with Handle. You are here: ChartSchool » Chart Analysis » Chart Patterns » Cup with Handle. The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. It was developed by William O'Neil and introduced in his 1988 book, How to Make Money in Stocks. As the name suggests, there are two parts to the pattern: the cup and the handle; the cup forms after a strong move and looks like a bowl or rounding formation. After the cup is completely formed, a trading range develops on the right part of the pattern which ends up being the handle and the handle is formed.
The cup and handle pattern occurs in both small time frames, like a one-minute chart, and in large time frames, like daily, weekly, and monthly charts. It occurs Jabil Circuit, Inc (JBL) Cup with Handle example chart from StockCharts.com. Trend: To qualify as a continuation pattern, a prior trend should exist. Ideally, the 18 Feb 2020 The cup with handle chart pattern is to serious investors what the single is to a baseball fan. It's the starting point for scoring runs. After forming the cup, price pulls back to about ⅓ of the cups advance, forming the handle. The handle is a relatively short period of consolidation. The full pattern Cup and Handle Pattern. The Cup and Handle pattern is a chart figure, which has a bullish potential. The pattern could appear after a price increase or a