Cup and Handle Strategy

The Cup and Handle pattern is a popular bullish continuation pattern used in technical analysis to identify potential breakout opportunities in stocks, forex, and crypto markets. This pattern forms when an asset experiences a rounded consolidation (the "cup") followed by a smaller pullback (the "handle") before breaking out to new highs. Traders use this setup to spot high-probability trading opportunities with strong upside potential.

To confirm a Cup and Handle breakout, traders rely on key technical indicators like volume spikes, moving averages, and RSI divergence. A successful breakout often leads to sustained price movement, making this pattern ideal for swing traders and momentum investors.

Understanding Cup and Handle trading strategies, entry and exit points, and risk management is essential for maximizing profits. Whether you're a beginner or an experienced trader, mastering this pattern can enhance your trading performance and improve your technical analysis skills.