#PHB/USDT
Cup and Handle Pattern
The Cup and Handle Pattern is one of the positive corrective continuation patterns that forms after a rise in the financial asset, meaning it forms during an uptrend, and represents a period of rest for the asset, after which a breakout occurs. It is also a price chart pattern that forms the shape of a cup and handle, indicating a bullish reversal signal.
What is the Cup and Handle Pattern composed of?
The cup that forms after the rise of the asset and appears as a round bottom.
The handle that forms after the cup is completed and is on the right side of the cup,
It can take many shapes such as: head and shoulders pattern, triangle patterns, flag patterns, or a regular handle.
Stages of Cup Formation:
It consists of two sides or peaks:
1- The left side: Represents the beginning of the pattern and is formed due to the rise in the asset's price aimed at distribution after a consolidation phase on the asset, then it starts to decline as a correction of about 50% of the initial rise.
2- The right side: The asset rises to form the right side of the cup, which is equal to or slightly higher than the left side, and after forming the right side, the cup is complete.
Stages of Handle Formation:
It forms after the cup is completed and is on the right side of the cup, serving as a correction for the rise that occurred to form the right side of the cup.
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