Chart patterns · Intermediate

Cup and Handle Pattern

A 1-minute lesson from the MarketPro academy, one of 22 in chart patterns.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

The cup and handle is a longer-duration continuation pattern that resembles the profile of a teacup: a rounded, U-shaped decline and recovery (the cup) followed by a smaller, shallower pullback (the handle) before a potential breakout higher. The cup typically forms over a more extended period, with price gradually curving down and then back up to near its starting level, reflecting a gradual shift from selling to buying pressure rather than a sharp V-shaped move.

The cup typically forms over a more extended period, with price gradually curving down and then back up to near its starting level, reflecting a gradual shift from selling to buying pressure rather than a sharp V-shaped move. The handle that follows is a brief, shallow consolidation near the cup's prior high.

Finish this lesson in the MarketPro app

2 more sections of Cup and Handle Pattern, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.

Scan with your phone camera to install MarketPro and open this lesson.

Download on theApp Store Get it onGoogle Play

Free account, no card. The academy has no paywall inside the app.

Not investment advice. Past performance is not indicative of future results.

Rounded bottom: A gradual U-shape is generally viewed as more constructive for this pattern than a sharp, narrow V-shaped low.
Handle depth: A shallow handle is traditionally viewed as more favorable; a deep handle that retraces a large portion of the cup can weaken the pattern's reliability.
Breakout confirmation: A move above the handle's resistance, ideally with a pickup in volume, is generally viewed as the pattern's completion point.

Because this pattern forms over an extended timeframe, it requires patience to identify, and like all patterns it can fail to reach its projected continuation after breakout.

Lesson 13 of 22 in Chart patterns

PreviousRising and Falling Wedges NextRounding Tops and Bottoms

Run the numbers while this is fresh

The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Position size calculator, Profit & loss calculator.

Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

Trade · Learn · Earn

The whole academy is free in the app

All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.

Download on theApp Store Get it onGoogle Play

Not investment advice. Past performance is not indicative of future results.