Investing Dictionary
Charts

What is Cup and Handle?

A bullish chart pattern shaped like a coffee cup

Full Explanation

The cup forms when a stock gradually drops then rounds back up to its previous high, creating a curved "U" shape. The handle is a short pullback before breaking out. A breakout above the handle is the buy signal.

Pro Tip

William O'Neil popularized this pattern. It often precedes significant upward moves.

Related Charts Terms

Bollinger Bands

Lines around a stock's price showing its normal range

Breakout

When a stock bursts above a resistance level

Candlestick

A chart shape that shows a stock's price movement in a time period

Death Cross

A bearish signal when a short-term average falls below a long-term one

View all Charts terms →

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