✅️The cup and handle pattern is a continuation pattern formed by two rounded valleys; the first one much deeper and wider than the second. The edges of the cup and the handle align on the same straight line of horizontal resistance. This line is called the neckline of the cup and handle figure.

For the pattern to be valid, the following must be met:

✅️The cup and handle figure must be preceded by a significant upward movement.

✅️The bottom of the cup valley must be below 50% of the upward movement that preceded the formation of the figure.

✅️The bottom of the handle valley must be below 50% of the height of the cup.