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bullish Signal
Cup and Handle
The cup and handle is a bullish continuation pattern. The "cup" is a rounded bottom (U-shape), and the "handle" is a slight downward drift at the end of the cup.
How to Trade
Buy when the price breaks out above the handle's resistance line. The target is often the depth of the cup projected upward.
Market Psychology
The rounded bottom shows a gradual shift from selling to buying. The handle is a final shake-out before the main rally continues.
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Head and Shoulders
Technical Diagram
This visual represents the ideal candle formation and breakout points for the Cup and Handle pattern.