A rounded U-shaped base followed by a small, shallow pullback (the handle) just below the rim. The breakout above the rim continues the uptrend.
How to identify it
- Rounded cup, not a sharp V
- Handle drifts lower and stays in the upper half of the cup
- Both rims sit near the same price
Entry
Buy the break above the rim after the handle.
Stop loss
Below the handle low.
Target
Cup depth projected above the rim.
Invalidation
Handle drops into the lower half of the cup.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your cup & handle trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.