Cup and Handle

In the lively world of trading, patterns usually occur as the most dependable indicators of potential price movements. The cup and handle are one such pattern that has captured the attention of traders for years due to its potential for significant profits. Overall, you can say this is one of the key technical analysis chart patterns that looks like a cup with a handle. This is usually a bullish continuation pattern which suggests an uptrend is likely to resume after the completion of this pattern. Let’s understand more about this pattern's key characteristics, limitations, and considerations. First, let’s understand the pattern in detail. The cup shape represents a time of accumulation and consolidation. The price will initially decline and form a rounded bottom and then slowly recover. This indication might show that the investors are buying stocks at lower prices. When it comes to handling this is a period that follows the cup. Usually, it’s a downward-sloping trendline which suggests a pullback before the price resumes its upward trajectory. When it comes to limitations and considerations, timeframe plays a crucial role. The pattern can form over different timeframes from days to years. Defining the exact shape and parameters of the pattern can be subjective. Lastly, the efficiency of the pattern can be influenced by broader market conditions and several other factors. Finding potential stocks considering cup and handle patterns is a challenging task but don’t worry FindScan is there to help you. This is an advanced screener which allows users to set required attributes like growth percentage, P/E ratio, ROE and provide you best stock list according to your investment requirements. The simple and user-friendly interface of this screener makes it suitable for both seasoned and newbie traders.