Enter your E-mail Address

Enter your First Name (optional)

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you STOCKS-SIMPLIFIED.com.

Home
Stocks Simplified Blog
What are Stocks?
Fundamental Analysis
Technical Analysis
Portfolio Management
Options
Spreads
Bonus
Key Phrases
Brokers
Contact Us
Free Newsletter
Chart Patterns
Other Money Sites
Recommended products
Recommended e-books
Link to us
Stock Splits
Site map
Why invest in stocks
Stock Trend
YOUR success

What is a cup and handle?

A cup and handle is a chart pattern. It gets its name from the odd shape it makes. The patterns consist of a rise in stock price. Then it swings down and back up forming a round bottom. Finally a handle is made by prices consolidating. When the prices break out it is a buy signal.

In this example the stock goes up to about $14.75. Here it stops and heads down. When it gets to $10.5 it heads up to $15.50. This completes the cup. Then it makes a handle as outlined on the chart. When the stock broke above $14 it gave off a buy signal. As you can see if you would have bought it you would have made some good money.



target It is said that in the target of the cup and handle can be found by adding the difference between the top of the right handle and the bottom to resistance. In this example the difference between the top of the right handle and the bottom of the cup is $15.5-$10.5=$5. Resistance is at $14. So, our target would have been $14+5=$19. This stock over shot that a little.



Social Bookmarks
Search Engine Optimization

footer for cup and handle page