Cup and Handle Pattern — Entry, Exit & Stop Loss Guide
How to identify a valid Cup and Handle, when to buy the handle breakout, where your stop goes, and what disqualifies the setup.
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About This Infographic
The Cup and Handle is a premium bullish continuation pattern identified by investor William O'Neil. The smooth U-shaped cup followed by a tight handle consolidation sets up a high-probability breakout. This infographic shows how to distinguish a valid rounded cup from an invalid V-shape, where the handle must form (no deeper than 15% from the cup rim), the exact breakout entry trigger, stop loss below the handle low, cup-depth measured move target, and the two most common disqualifiers — V-shaped cups and handles that drift too deep.
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