Cup & Handle is one of the most popular chart pattern among technician, it is a bullish reversal pattern. Sometimes people call this pattern as rounding bottom or saucer pattern.
Usually the handle is half of the height of the cup & the formation of handle is seen when it has a breakout from the bottom of the handle with huge volume. This is one of the indicator of the handle breakout before confirming the price breakout, and another confirmation of the handle formation is the most essential in the pattern.
We can find this pattern as both bullish reversal or continuation pattern. In bullish situation, this pattern happen usually in consolidation phase, but in bearish situation, this pattern usually appear at the bottom of the bearish.
Happy Investing^^
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