Cup and Handle pattern

A "cup and handle" is a technical chart pattern that resembles a cup and a handle, where the cup is in the shape of a "u" and the handle has a slight downward drift.

1: Cup Bullish (continuous) pattern
A Cup and Handle pattern is formed, after a pullback from an upward rally that stalls due to overhead resistance.

2: Inverted Cup bearish pattern
An Inverted Cup and Handle pattern is formed after a pullback from a low swing, that stalls due to underlying support.  

A cup and handle is considered a bullish signal forming an uptrend, and is used to spot opportunities to go buy.

A cup and handle is considered a bearish signal, extending a downtrend, and is used to spot opportunities to go sell.