What Is a Cup and Handle Pattern?

By Kristi Waterworth – Updated Dec 4, 2025 at 12:01 AM EST

Key Points

The cup and handle pattern predicts a bullish trend, indicating a potential buy opportunity.
Look for a U-shaped cup and a shallow handle to identify ideal cup and handle patterns.
Confirm the pattern with a price rebound beyond the cup's right edge before buying.

When you’re reading up on stocks or listening to interviews with professional traders, you may come across specific terms that describe different chart appearances. A cup and handle pattern is commonly used to help predict a bullish breakout for a security.

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Steaming coffee cup sitting on a counter surface — Source: Getty Images

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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