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--- chart_analysis:chart_patterns:cup_with_handle_continuation [2023/06/07 13:34]
jayanthi [What Is the Cup With Handle Pattern?]
+++ chart_analysis:chart_patterns:cup_with_handle_continuation [2023/06/07 14:22]
jayanthi [How can you find stocks that have formed a Cup With Handle pattern?]
@@ Line 31: / Line 31: @@
 ===== Cup With Handle FAQs =====
-==== Is a cup with handle pattern bullish? ====
+==== Is a Cup With Handle pattern bullish? ====
+A Cup With Handle pattern is a bullish continuation pattern that marks a consolidation period followed by a breakout.
+==== What does a Cup With Handle pattern indicate? ====
+A Cup With Handle pattern has two parts—a cup and a handle. The cup forms after an advance in price. This prior trend is important as is the duration of the trend. The trend should only be a couple of months old. After completing the cup pattern, a trading range develops on the right side and the handle is formed. When price breaks out of the handle's trading range, it signals a continuation of the prior trend.
+==== How can you trade stocks that have formed a Cup With Handle pattern? ====
+Once you spot a chart with a Cup With Handle pattern, it's best to wait for price to break out of the handle before entering a long position. But before you do, make sure that trading volume is strong. This confirms that price will follow through to the upside.

Cup with Handle