TLDR
The Cup With Handle pattern, developed by William O’Neil, is a technical indicator for identifying the continuation of a trend after a period of consolidation. It consists of an initial uptrend that’s ideally not too mature, a U-shaped move (cup), followed by another sharp and minor shake out (handle) The price, after a rally, starts to consolidate with a smooth slope but then bounces back to the previous highs as it faces support at lower price levels. The profit target is usually 20–25% above the initial resistance (pivot point), and the stop-loss range is 5–8% below that line.via the TL;DR App
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Written by aliakh | Quant Dev @ Agron Capital | Student @ UniBocconi
