<center>![Cup and Handle.jpg](https://steemitimages.com/DQmdHk9LQq5aSw8K762maygvFPE1tnVNKxpRaq7qpoUy5kp/Cup%20and%20Handle.jpg)</center>

No explanation needed why this chart pattern is named the Cup and Handle. A subsiding price action forms the down slope of the cup, before regaining momentum to complete the cup as it reaches it's former high or resistance point. The market catches its breath as it stalls sideways or even downwards before seeing a breakout in the upward trajectory.

The Cup and Handle is an extremely bullish signal and can be classified as both a continuation and a reversal pattern. When appearing on an up-trend the Cup and Handle continues this movement, whilst appearing on a down-trend, the formation of a Cup and Handle is a signal of a reversal.

You should be looking for a handle retracement of no more than 1/3 of the cup height, and as always keep an eye out for increased volume signalling a confirmed breakout.