I’ve been looking into technical analysis lately and came across the cup and handle pattern. Some traders swear by it, but I’m not sure how reliable it really is.
Has anyone here had success using this pattern? Or is it just another overhyped indicator that doesn’t work consistently?
Cup and handle reliability:
• Historical success rate: 65-75%
• Key factors: volume, breakout confirmation, overall trend
• Effectiveness varies by timeframe and market conditions
Combine with other indicators. Strict risk management essential.
Cup and handle gave me a big win on Apple last month, but burned me badly on Tesla before that.
It’s tempting to see patterns everywhere, but I’ve learned the hard way to be skeptical. Now I use it as just one piece of a larger analysis.
My biggest lesson? Never bet more than I can afford to lose on any single setup.
Cup and handle can work, but don’t bet the farm on it. I’ve used it for years with decent results, but it’s just one tool in the box. Key is to look for confirmation from volume, trend lines, and other indicators. Risk management trumps any pattern - never risk more than 1-2% per trade no matter how good the setup looks. And always have an exit plan before entering. Patterns are helpful, but the market doesn’t care about your pretty charts. Stay flexible and be ready to cut losses if it goes against you.
Cup and handle pattern sometimes works if confirmed by other indicators. Past trades showed mixed success and proper risk management is crucial.
It is useful but not foolproof so always watch other market factors before committing.
Works about 60% of the time for me. Made $500 on AMD using it last week. Gotta combine it with volume and support/resistance levels though.