Cup and Handle
The "Cup and Handle" is a technical chart pattern used in stock trading. It resembles a cup with a handle, where the cup is formed after a price decline followed by a gradual rise, creating a U-shape. This pattern indicates a potential bullish trend, suggesting that the stock may continue to rise after the handle forms.
The handle appears as a slight pullback after the cup, typically sloping downward. Traders often look for a breakout above the handle's resistance level as a signal to buy. This pattern is popular among investors, including those following the strategies of William J. O'Neil, who popularized it in his book, How to Make Money in Stocks.