Cup with Handle is a bullish pattern signal. It is similar with Rounded Bottoms. The pattern is similar in appearance to a coffee cup with a right-side handle, and indicates the potential for an uptrend. The cup always precedes the handle. As the cup develops, the price pattern follows a gradual bowl shape. There should be an obvious bottom to the bowl, a v-shaped turn is not a good indicator. The handle tends to be down sloping, and indicates a period of consolidation. Consolidation occurs when the price seems to bounce between an upper and lower price limit. You can track the down sloping angle of the handle by drawing trend lines across the upper and lower price limits.
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