The Cup and Handle pattern is a bullish continuation pattern that signals a potential upward breakout. It is formed by:

* Cup : The price forms a “U” shape, indicating a period of consolidation before a move higher.
* Handle : After the cup formation, the price slightly retraces in a small consolidation before breaking out to the upside.
* Neckline : The resistance level at the top of the cup, where the breakout occurs.

Once the price breaks above the neckline with strong volume, it signals a potential continuation of the uptrend.

How Traders Use It:
* Entry Point: Buy when the price breaks above the neckline.
* Stop-Loss: Place below the handle or the cup base to limit risk.
* Target Price : Measure the height of the cup and project it upwards from the breakout point to estimate the target.

The Cup and Handle pattern is commonly seen in trending markets and is often used to identify a strong upward momentum .