What is the Cup With Handle
The Cup With Handle is a multiple candlestick chart pattern that indicates the continuation of an uptrend. This pattern is called Cup With Handle as it is shaped like a cup with a handle.
Understanding the Cup With Handle
The Cup With Handle is a candlestick pattern that consists of multiple candlesticks. The first candlestick is bullish and indicates that the market is in an uptrend. Following this candlestick, the market faces a downfall and a following rise which form a U shape. The market then faces another sideways downfall before finally completing the pattern in an uptrend.
How to trade the pattern?
Once you detect the pattern you are looking to open buy position. When the price broke support like you are going to open buy position and place stop below last bottom. (check image above for more details).