One of the most successful patterns in the investing realm is the “cup and handle” pattern. This is a commonly seen pattern on stocks that create huge gains that could change your life. I am sure you are asking, “What exactly is a ‘cup and handle’ pattern?” It is a pattern on the weekly stock price chart that looks like a cup with a small handle. In a bull market you will see hundreds of these patterns and a few of them will lead to major gains of 200% to 1200%. You need to make sure it has all the bullet points below to be a true “cup and handle” pattern.

• Prior price uptrend is at least 30% run up (major price up trend)
• The cup should be over at least 7 weeks
• The handle should be within 15% of the old high
• Handle should last at least one week
• Buy point is right after old resistance (old high)

Not the following: The pull back is from old buyers selling stock that they had at the old high. They sell so that they can cover the price they paid for the stock and fear it might drop again. If you are watching a stock with this pattern, “cup and handle,” make sure to buy right after resistance. Do not be scared, just make sure if the pattern does not work to cut losses.

This is a sample image: