🔥 Learning of the Day 🔥
👉👉 Cup And Handle Pattern
Cup and Handle Pattern: A Bullish Breakout Signal
The Cup and Handle pattern is a popular chart formation in technical analysis that signals a potential bullish continuation. It gets its name from its distinctive shape a rounded "CUP" followed by a small downward drift or consolidation known as the "HANDLE."
✴️ How it works:
The cup resembles a "U" shape, showing a period of consolidation and recovery.
The handle forms as a short pullback or sideways movement, indicating a brief pause before the next move.
A breakout occurs when price moves above the handle's resistance, often triggering a strong upward trend.
✴️ Key Points:
✅ Signals potential upward momentum
✅ Best used on longer timeframes (daily/weekly charts)
✅ Volume confirmation strengthens the pattern
Traders often watch this setup for entry points before the breakout. Like all patterns, it’s not foolproof so always use risk management!
