> For the complete documentation index, see [llms.txt](https://smartmoney.gitbook.io/smart-money-concepts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartmoney.gitbook.io/smart-money-concepts/definitions/candlestick-patterns/cup-and-handle.md).

# Cup and Handle

Bullish continuation pattern

The cup and handle is a bullish continuation pattern where an upward trend has paused but will continue when the pattern is confirmed. The "cup" portion of the pattern should be a "U" shape that resembles the rounding of a bowl rather than a "V" shape with equal highs on both sides of the cup.

The "handle" forms on the right side of the cup in the form of a short pullback that resembles a flag or pennant chart pattern. Once the handle is complete, the stock may breakout to new highs and resume its trend higher.

<figure><img src="https://929344964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5nf3g52cn0PXZ0Xzzs9m%2Fuploads%2FRIPCKBkFdOiIdcjn0TEM%2Fimage.png?alt=media&amp;token=cc812d08-47e2-44c5-95f1-eaeefc52302a" alt=""><figcaption></figcaption></figure>