Cup with handle: a popular pattern for traders

The cup with handle is one of the most well-known patterns in technical analysis, which traders use to forecast further price movement. This graphical figure resembles a cup with a small bounce (the handle) on the right side. The pattern signals a possible continuation of the trend after the formation of a stable descending or ascending movement. The key features are the rounded shape of the cup and the handle shape, which appears after consolidation. When the pattern is confirmed, traders often open buy positions, anticipating a price increase.