The cup with handle pattern:
As can be seen from the chart, price forms "U" shape forming the cup of the pattern, price comes back up and touches the same level on the left hand side.
Price then accumulates forming the handle to the cup, this is the most important part. this is can be shown as an complex pullback.
Once the pullback part of the handle is complete, you would enter this on the break of the cup level.
A cup and handle is considered a bullish continuation pattern and is used to identify buying opportunities.
As can be seen from the chart, price forms "U" shape forming the cup of the pattern, price comes back up and touches the same level on the left hand side.
Price then accumulates forming the handle to the cup, this is the most important part. this is can be shown as an complex pullback.
Once the pullback part of the handle is complete, you would enter this on the break of the cup level.
A cup and handle is considered a bullish continuation pattern and is used to identify buying opportunities.