Forex Trading

Cup And Handle Pattern: What Is It & How to Trade It

Welcome to, your gateway to the world of trading in 2024. This free trading academy is not just a platform; it’s a transformative journey for anyone aspiring to master the art of trading in Forex, Crypto or Stock Market trader. …but I can’t teach you to do full pulls on your trades when you haven’t even learned how to number one, master yourself, get yourself in a position that you can be trained and learn.

Here’s an example of a cup and handle in a longer time frame. NGTF started the pattern at the end of November 2018 and went into trading webinar February of 2019. In other markets, a handle means the whole numbers involved in a price quote, without the decimals included.

“You want to be productive, I want to do what I always do,” Lillard told ESPN. Throughout the process, Lillard has leaned on his family even more than he did while in Portland. “From the beginning of the season to where we are now, I think we’ve come together,” Antetokounmpo said after Rivers’ debut Monday night. “But it’s got to be more. It’s got to be more. We have 30-something games left plus playoffs; we’ve got to keep on coming together.”

  1. This site is all about quantified strategies and we only add a profitable trading strategy to our portfolio of trading strategies if it has strict buy and sell rules that is not left to discretionary judgment.
  2. The top cup and handle pattern trader is American investing champion Mark Minervini who trades a variation of the pattern.
  3. After the cup is completed, a trading range develops on the right side — which forms the handle.
  4. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
  5. Traders should also be aware that handles can be volatile and subject to sudden price movements.

It is considered a consolidation in the uptrend, and the trend is expected to continue moving upward after the consolidation when the price breaks above the resistance of the consolidation. Like all technical indicators, the cup and handle should be used in concert with other signals and indicators before making a trading decision. Specifically, with the cup and handle, certain limitations have been identified by practitioners. The first is that it can take some time for the pattern to fully form, which can lead to late decisions.

Georgia seaports handled a record number of automobiles in 2023 while container trade dropped 16%

The handle will typically form a descending trendline … Take a look at the chart below for an example. The round shape indicates consolidation, and that’s a good thing. If the cup is in a V-shape, the reversal will be too sharp of a movement. One of its limitations is the ambiguity of the pattern formation. It’s important to note that even O’Neil says the pattern isn’t an exact science. Sometimes the initial drop from the top of the cup can go as deep as 75% … And sometimes the cups don’t even have a handle.

The Bucks opened the season 5-4, with Lillard missing losses to the Indiana Pacers and Orlando Magic because of calf soreness. In the seven games he did play in that stretch, Lillard shot just 40% from the field and 29.3% from 3. Still, he had less than a week between the trade and the start of camp to pick up his life and move to an unfamiliar new home. “Going into every season [in Portland], it was being optimistic and thinking we got a chance to get it done,” Lillard said after being introduced at Bucks media day this past October. “Then coming in this situation and knowing that you got an opportunity to do it.” Lillard and Goodwin first talked about Milwaukee a few weeks earlier, but still, the suddenness of the move caught Lillard off guard.


The pattern failed at first … but ended up completing the pattern three days later. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more.

In addition to acting as support or resistance levels, handles can also be used in technical analysis. Traders may use handles to identify trends, support and resistance levels, and potential entry and exit points for trades. For example, if a currency pair has been trading above a handle for an extended period, that handle may be a significant support level that traders should watch for potential buying opportunities. The Cup and Handle pattern is a bullish continuation or reversal price formation, often used to identify buying opportunities. To determine the cup and handle, follow price movements on a chart and look for the “u” shape and the downward handle. Some rules will help you find a valid Cup and Handle pattern relating to its length, depth, and the underlying asset’s liquidity.

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Yep, this is a bullish pattern and can be a technical indicator for traders of a potential upcoming breakout. By learning to recognize them in real time, traders can limit their risks by determining the best points for entry and exit. O’Neil included time frame measurements for each component, as well as a detailed description of the rounded lows that give the pattern its unique teacup appearance. A handle is the whole number part of a price quote, that is, the portion of the quote to the left of the decimal point. For example, if the price quote for the stock is $56.25, the handle is $56, eliminating the value of cents in the quote.

This example is best for stock traders seeking to trade a cup and handle. Cup and handles can be applied to scalping strategies, day trading strategies, swing trading strategies, position trading strategies, and investing strategies. The cup and handle pattern trading risk-reward ratio is 2.50 to 1 meaning a reward of $2.50+ for every $1 risked. If you are studying a price action, you should definitely know Cup and Handle formation. In this educational article, I will teach you how to identify this pattern. We will discuss its psychology and I will share with you 2 trading strategies.

What is a proper cup and handle pattern?

E.T.F.s track the performance of the assets they hold, which might include a diversified basket of securities like stock or bonds, or even single commodities, like gold, silver and crypto. Federal regulators have made it easier for everyday investors to buy funds that track the price of Bitcoin, using traditional brokerage accounts. Trend strategies are good – they may give significantly good results in any time frame and with any assets. The main idea of the ADX Trend-Based strategy is to try to catch the beginning of the trend. You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money. Refer to books written by experienced traders and technical analysts that cover chart formations.

The depth of the cup from the bottom to the rim should be measured, then projected upward from the breakout point. This can act as a goal or a partial price target point where some gains can be realized. If a breakthrough has already taken place, an alternative strategy is to wait for a pullback to the breakout level or the handle’s low. It is generally shorter in duration compared to the cup and can last anywhere from a few days to several weeks. The handle should ideally retrace a relatively small portion of the cup’s upward move, typically not more than one-third of the cup’s depth.

Therefore, in this FXOpen guide, we will look at how it works, how to determine it, and how we can trade with it. On Sept. 10, XTO shares pressed to just below the 21.05 buy point in strong trade. The handle settled into picture-perfect action, edging lower in soft volume for the next two weeks (3). Shares drifted lower over the next three weeks, yet it was not quite the settled action you’d like to see.

Goodwin hung up the phone quickly to call the Bucks back and allow Lillard to process the news. Several established financial institutions, including Fidelity and BlackRock, have coalesced around Bitcoin because it is the world’s first and largest cryptocurrency. Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. This website is using a security service to protect itself from online attacks.

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