Understanding the Cup and Handle Pattern
Bullish Signal: The cup and handle is a classic bullish continuation pattern, suggesting a potential upward breakout after a period of consolidation.
The "Cup": This part of the pattern resembles a rounded bowl or a "U" shape, indicating a period where the price stabilizes after a decline.
The "Handle": This represents a slight downward drift or a tighter consolidation with lower trading volume on the right-side of the cup.
Bullish Signal: The cup and handle is a classic bullish continuation pattern, suggesting a potential upward breakout after a period of consolidation.
The "Cup": This part of the pattern resembles a rounded bowl or a "U" shape, indicating a period where the price stabilizes after a decline.
The "Handle": This represents a slight downward drift or a tighter consolidation with lower trading volume on the right-side of the cup.