A Thread 🧵

âś… What is Cup and Handle pattern and how to use in trading ??

âś… Bullish and Bearish C&H pattern.

A detailed Thread on C&H pattern with graphical + Practical examples.

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Cup & Handle pattern

• A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift.

• It is a trend continuation pattern

• Occurs after a decent uptrend or downtrend.
• Easy to identify as it looks like a cup with a handle.

• C&H pattern made popular by William O’Neil in “How to Make Money in Stocks.”

âś… Types of C&H pattern

1- Bullish C&H pattern
2- Bearish C&H pattern

Graphical Examples 👇
1- Bullish C&H pattern

• It’s continuation pattern indicating bullish sentiment

• It occurs after an uptrend

• A bullish pattern suited for breakout traders

• The cup should resemble a bowl or rounding bottom.
1- Bearish C&H pattern

• It’s continuation pattern indicating bearish sentiment

• It occurs after an downtrend

• A bearish pattern suited for breakout traders

• A bearish pattern can be a technical indicator for traders of a potential upcoming breakout.
It was developed by William O'Neil and introduced in his 1988 book, How to Make Money in Stocks.

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