Market Intelligence › Basic Terminologies

CUP AND HANDLE

A round bottom followed by a short pullback — the shape of a breakout after a long consolidation.

Published by The Retail Trader · JUL 31, 2026 · Price Action

Cup and Handle — a round bottom followed by a short pullback — the shape of a breakout after a long consolidation.

WHERE THIS FITS IN

This term comes under Price Action, in the section "LARGE CHART PATTERNS". Several candles together make shapes which have their own names:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Double Top
• Double Bottom
• Head and Shoulders
• Triangle
• Flag / Pennant
• Wedge
• Rectangle / Range

To read the entire group and all its examples in one place, see the journal "PRICE ACTION: THE LANGUAGE OF THE CANDLE" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

Back to Market Intelligence