Cup and handle is a bullish continuation pattern. These basic rules to analyze cup and handle pattern can help you to understand its viability. This unique pattern can easily be compared with the typical shape of a tea cup. It was originally introduced by William O’Neil. The cup with handle pattern is usually preceded by an upward move that stalls due to selling off. This initial selling pressure results in the formation of initial part of this pattern. After the sell-off, the security is likely to trade flat for an extended period of time without any clear trend. In next part of the pattern, an upward move will proceed back towards the peak of the preceding upward move. Finally, the last part of the pattern i.e. handle formation is marked by a relatively smaller downward move. This move is followed by a bullish breakout with increased trading volume & volatility. But, cup with handle pattern is not as easy as it may appear to novice traders. You need to follow certain basic rules to identify and trade this pattern. Read more at: http://getupwise.com/finance/investments/stocks-mutual-fund/20-basic-rules-to-analyze-cup-and-handle-chart-pattern/ Our slideshare content is intended for educational purpose only. It’s not intended for the purpose of replacing professional financial advice. Follow Us On.... Facebook: https://web.facebook.com/getupwise Twitter: https://twitter.com/GetUpWise Google Plus: https://plus.google.com/u/0/114410131743470430654/posts Pinterest: https://in.pinterest.com/getupwise/ Tumblr: http://getupwise.tumblr.com/ Flickr: https://www.flickr.com/photos/136979772@N03/