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 by a rounded bottom followed by a slight pullback, creating the handle. This pattern indicates a potential bullish trend, suggesting that the stock may rise after the handle is completed. Traders often look for this pattern as a signal to buy, as it can indicate a period of consolidation before a breakout. The pattern is typically identified on price charts over various time frames, making it a versatile tool for both short-term and long-term investors.