Cup with Handle
Often, a single technical formation incorporates the rules of other patterns. This illustrates the concept that no single technical signal is good enough to stand by itself. Rather, when several indicators signal concurrently, each is reinforced, and the likelihood of a correct trading decision is increased geometrically. One such pattern is called the “cup with handle.”
The cup with handle pattern is commonly applied to the stock market, although any market with daily volume data should theoretically work the same. The pattern gets its name from its appearance of a coffee cup with a handle on the right.
Basing Pattern
After a rally, the stock settles into a downward correction pattern that usually lasts three to six months. ...
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