Some comments about Cup and Handle picked up from

Some comments about Cup and Handle picked up from web:

A cup and handle formation is considered to be a bullish signal, and is usually followed by a sharp rise in value.

Breakout Expectation:  The height of the cup is the expected gain that a breakout should achieve, added to the breakout point at the top of the handle.

One of the most fundamental chart-base price patterns looks like a cup with a handle when the outline of a cup is viewed from the side. Cup patterns last, in time duration, from 7 to as many as 65 weeks

Technical charting pattern coined by IBD founder William J. O'Neil. It is one of three positive chart patterns to look for when doing technical analysis of a stock. It is named such because it resembles the outline of a coffee cup with a handle. The pattern can last from seven weeks to as long as a year, but most are three to six months.The handle area should slant lower as the last remaining sellers exit the stock.

The cup and handle pattern is a well-known chart pattern, which is a continuation setup for higher prices.

Cup and handle patterns are found within uptrends, and are named for their appearance which resembles a cup and handle.  This pattern is the result of a resting period in the stock, with the round cup shape followed by narrow price action which forms the appearance of the handle. The technical buy point is as the stock clears the handle area to the upside, ideally on volume expansion.

This example of a cup and handle pattern is found in QCOM during its tremendous upside run back in 1999.  After a very clean uptrend, this stock rested and formed the cup and handle pattern before breaking out once again and moving significantly higher.





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