"Cup and handle is a technical chart pattern used in trading and investing to identify potential bullish continuation patterns. It is formed by a "cup" followed by a "handle."
The "cup" is a U-shaped curve that is formed when the price of an asset rises, then falls back to the same level or slightly lower, and then rises again to the same level as the first peak. The "handle" is a small downward price movement that occurs after the peak of the "cup" formation.
The pattern is considered bullish because it suggests that the market has reached a bottom and is now ready to move higher. Traders often look for high trading volume during the "cup" formation, which indicates strong buying activity, and lower volume during the "handle" formation, which indicates a consolidation phase before the asset potentially moves higher." - ChatGPT
The "cup" is a U-shaped curve that is formed when the price of an asset rises, then falls back to the same level or slightly lower, and then rises again to the same level as the first peak. The "handle" is a small downward price movement that occurs after the peak of the "cup" formation.
The pattern is considered bullish because it suggests that the market has reached a bottom and is now ready to move higher. Traders often look for high trading volume during the "cup" formation, which indicates strong buying activity, and lower volume during the "handle" formation, which indicates a consolidation phase before the asset potentially moves higher." - ChatGPT