📍 Entry / Buy Zone
Above the Rim
Buy on a candle close above the cup's rim (resistance) as the handle completes.
🛑 Stop Loss
Below the Handle
Place the stop just below the low of the handle pullback.
🎯 Price Target
Breakout + Cup Depth
Measure the depth of the cup and project that distance up from the breakout.
⚖️ Risk / Reward
Aim for ≥ 2:1
Only take the trade when the measured target gives at least twice your risk.
Trading Rules — Cup & Handle
01Rounded base. A smooth, U-shaped cup — not a sharp V — shows gradual accumulation.
02The handle. A small, shallow pullback near the rim shakes out weak hands before the breakout.
03Wait for the rim break. Enter on a close above the cup's rim, ideally on rising volume.
04Handle depth matters. A handle that retraces more than ~⅓ of the cup weakens the pattern.
05Bullish continuation. Best when it forms after a prior uptrend, as a pause before higher prices.
For educational purposes only. Not financial advice. Always manage risk with position sizing and never risk more than you can afford to lose.