Is the cup and handle pattern bullish?

Yes, the cup and handle pattern is considered bullish. Rather, it is a bullish continuation pattern that follows a standard uptrend, signals some price correction, a price rise, a quick consolidation, and an eventual breakout to continue the uptrend.

What does the cup and handle pattern indicate?

A cup and handle pattern indicates that an asset might undergo a period of correction after an uptrend with reducing selling pressure, and once the weak hands are out, the uptrend could continue. Per the pattern, the bullish sentiment is likely to continue as the sellers will get tired and leave the assets at the counter. The buying pressure will then push the prices higher.

How successful is the cup and handle pattern?

Even though the cup and handle pattern is relatively credible and often successful, the actual result will have a lot to do with the broader market sentiments, macroeconomic scenario, and even the bullishness of other indicators.

Is the cup and handle pattern bullish or bearish?

The cup and handle pattern is a bullish continuation pattern. However, it also has a bearish, inverse cup and handle pattern, which is a typical bearish continuation pattern best known for the inverted cup and an upward-sloping handle.

Which pattern is best for bullish?

While there is no one pattern that can define or predict a bullish price movement, some of the more credible ones include the flag and pole, ascending triangle, double bottom, and certainly the cup and handle pattern. Out of these, the cup and handle defines market psychology in the best possible way and is one of the easiest patterns to read.

Can a cup and handle be bearish?

Well, a traditional cup and handle pattern isn’t bearish. However, in some cases, if the bottom of the cup is deeper than 50% of the previous uptrend in terms of value, the price levels might not adhere to the standard bullish continuation hypothesis. And yes, there is an inverse cup and handle in the technical analysis world, which is nothing but bearish. So you need to watch out for that.

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