# Cup & Handle

This pattern looks like a bowl followed by a small pullback, resembling a coffee cup with a handle. It often appears in an uptrend, hinting at continuation.

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### How to Identify

1. **Cup Shape.** Price drifts down in a gentle arc, then climbs back up to the starting point.
2. **Handle.** After reaching the “rim,” price pulls back slightly, forming a short dip.
3. **Volume.** May dip during the cup’s formation and pick up once price starts to move higher.

### How to Use

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* **Entry**: many wait for a break above the handle’s resistance line.
* **Stop**: place stops below the handle, so if price fails to push higher, your risk is limited.
* **Target**: measure the distance from the bottom of the cup to the rim, then project it upward from the handle breakout.

### Pro Tips

* Make sure the cup is fairly rounded, not too sharp.
* Check overall trend direction — Cup & Handle usually appears in a bullish context.
* Watch volume for a surge once price clears the handle.

### Exercise

Scan historical charts for a bowl-like dip followed by a small pullback. Mark the cup rim, identify the handle, then watch for a breakout. Pretend you enter once price clears the handle. Place stops under the handle and aim for a target based on the cup’s depth. Track your results across different symbols to see which setups look most promising.
