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How Do I Trade A Cup and Handle Stock Chart Pattern?The Cup and Handle is a very popular stock chart pattern. A continuation pattern that forms in an up trending stock. The formation gets its name from a round shaped pullback that looks similar to a cup and a small pullback the resembles a handle. William O'Neil introduced it in his book, How to Make Money in Stocks, in 1988. 
This pattern forms a resistance line across the two highs of the "cup". The breakout occurs when price breaks through the trend line. The smaller the handle is, the more bullish the formation. This, as with other patterns, will not always be perfect in shape. Study all these patterns and add them to your sock and option trading strategies. Leave Cup and Handle and go back to Stock Chart Patterns.
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