Cup with Handle
A rounded, U-shaped base between two similar highs, then a small pullback (the handle); completes on a close above the rim.
William O'Neil's cup with handle: a rounded decline and recovery back to the old high, a shallow handle that shakes out weak holders, and a breakout above the rim.
Cups that are V-shaped or very deep are excluded; the handle low negates the pattern.
How we define it
- Rim: two swing highs within 3% of each other, nothing above the rim in between
- Cup: at least 4 ATR and 8% deep, at most 50%; the low in the middle 20-80% of the cup; closes fit a U-shaped curve (R² ≥ 0.65); at least 30% of closes in the lower half (U, not V)
- Handle: 5-30 candles on 1D (6-40 on 4H, 2-10 on 1W), at most half the cup width, dips at least 1 ATR and stays in the upper half of the cup
- Prior trend not down
- Breakout (up) / breakdown (down): the first candle close beyond the boundary by at least 3% on 1D and 1W (1.5% on 4H)
- Failed breaks: a breakout or breakdown that closes back inside the boundary within 6 candles on 4H, 5 on 1D or 3 on 1W is removed from the list
- Trend filter: breakouts only above the 200-period EMA (40-week EMA on 1W), breakdowns only below it
- Watchlist: the pattern is complete but unbroken and price is within 3% (or 1 ATR, at most 6%) of the boundary
No recent breakout or breakdown
No cup with handle has completed recently. See all patterns.
Nothing on the watchlist
No mature cup with handle is close to its breakout or breakdown level right now.