Cup and Handle
A rounded bottom followed by a small dip that, on a breakout, often points to higher prices.
William O'Neil popularized the pattern. Price carves a rounded 'cup,' a gradual decline and recovery back toward the old high, then drifts down into a shallower 'handle.' A push above the handle's top is the breakout traders watch for.
The shape suggests accumulation: sellers get worked through on the way up, and the handle shakes out the last weak hands before the move. It can take weeks or months to form. Like all chart patterns, it fails often, and a breakout on weak volume is a common tell.
Related terms
Price pushing decisively through a level it had been stuck below or above, often on rising volume.
Support and ResistancePrice levels where buying or selling has repeatedly stalled a move, marking floors and ceilings on a chart.
TrendlineA straight line linking a series of highs or lows to map the direction price is traveling.
Bull MarketA sustained period of rising prices, when buyers dominate and optimism pushes valuations higher across the market.