Cup and handle

The shape

1. The cup: price rounds down and back up to about where it started, a U rather than a V.
2. The handle: a short, shallow drift down near the top of the cup.
3. The breakout: a close above the handle's high (the cup's rim).

Trading it

• Entry on the close above the rim.
• Stop under the handle's low.
• The classic target is the cup's depth, measured from the breakout (stops and targets).

The inverted cup and handle is the same upside down, breaking down.