Intermediate · Candlestick & chart patterns
Cup & Handle
What it means
A rounded recovery back to an old high is followed by a shallow drift lower and then a break above it, a tested ceiling the advance may potentially continue through.
At a glance
- Directional bias
- Bullish continuation
- Sessions to form
- 21 consecutive sessions
- Curriculum tier
- Intermediate
- Pattern family
- cup and handle
Practise this pattern in the Simulator
Reading a definition is not the same as spotting one. Run Cup & Handle on real historical NSE daily bars in the Pattern Arena — the chart pauses and explains the formation each time it completes. Virtual capital only.
Practise Cup & Handle in the SimulatorRelated patterns
Inverse Cup & Handle
bearishA rounded decline back to an old low is followed by a shallow drift higher and then a break below it, a tested floor the decline may potentially continue through.
Tweezer Top
bearishTwo consecutive sessions peak at almost exactly the same high, showing buyers repeatedly failing at one price and indicating a potential reversal downward.
Tweezer Bottom
bullishTwo consecutive sessions bottom at almost exactly the same low, showing sellers repeatedly failing at one price and indicating a potential reversal upward.
Three Inside Up
bullishA small up session is contained by the prior down session and a third session then closes above both, confirming selling momentum has stalled and a potential reversal is forming.
Three Inside Down
bearishA small down session is contained by the prior up session and a third session then closes below both, confirming buying momentum has stalled and a potential reversal is forming.
Three Outside Up
bullishAn up session completely covers the prior down session and a third session closes higher still, confirming buyers have taken control and indicating a potential reversal upward.
Educational reference only. This describes what traders conventionally read into the Cup & Handle formation. It is not a trading signal, a prediction or investment advice, and no pattern is reliable on its own. Finance Onyx is a simulated educational platform: all practice uses virtual capital and no order is ever routed to a broker or an exchange.