Cup with Handle Pattern

Market evaluation from technical analysis viewing shot work that out the price fluctuation can also move and pass curved shapes, like a cup with a handle. The possibility of facing a cup with a handle pattern in a price chart is not so much to tell, it is common and not so little to be ignored. Getting familiar with this pattern is delightful when traders, who studied, can recognize it sooner and be one head and shoulder above other traders. In the following, the cup with handle pattern is discussed fully in two part:

1. Cup with Handle Pattern (Standard)
   
2. The Inverted Cup with Handle Pattern

1. Cup with Handle Pattern (Standard)

Technical analysis categorizes a cup with a handle as a bullish continuation pattern with the aim of identifying buying opportunities. Its shape made it distinct. A Cup with a handle is the name of pattern which has  U shape formed as a cup and a descending channel, usually drifting downward, as its handle. Unlike other patterns, overall price fluctuation creates a semi-arc shape. The cup starts shaping when the bullish market hits the exiting resistance level and then sags in a gentle slope until it marks a support level at the bottom. The concavity will be complete when price begins growing and again meet the resistance above. Handle should be smaller than the cup and stay in the upper third. But it shouldn't drop into the lower half of the cup

2. Trendline: A clear resistance line above the cup is required to show the cup's height. The height refers to the vertical distance between the resistance on top and the support level at the bottom. A bearish channel, just after the end of the pattern, is the outline of the handle for the cup. 
3. Pattern Category: It is a member of continuous family patterns. 
4. Breakout Direction: 

Expectation: Since in many cases, cup with a handle is considered a bullish trend, the price leaves the handle in an upward direction. It is estimated that the price will rise as the height of the cup, from the bottom to the top-right corner of the cup. 
Failure: When the price moves onward to the presumed resistance level but fails to maintain the direction and falls, the pattern seems to be failed. 

2. Inverted Cup with Handle Pattern

It is eye-catching to see a long-term, series of price peaks on price chart. A convex semicircle is different from other patterns that only associate inverted cup with handle. In the list below, all aspects of this pattern are described. 
1. Appearance: This pattern composes of two main parts, first a convex, semicircle part which is assumed as an inverted cup with a bullish channel at its end as a handle. 
2. Trendline: An evident support level at the bottom hold up the 
3. Pattern Category: Continues. 
4. Breakout Direction:

Expectation: Bearish inverted is a common phrase among traders that assigns to an inverted cup with a handle pattern. A bearish trend steps into the cup and leaves the handle in a bearish trend. Having down a breakout is more likely to happen.  

Failure: If the pattern causes a change in trend and make a bearish to bullish or bullish to bearish one, the pattern show a reversal manner and failed.