Cup and Handle vs Rounded Top – Forex Candlestick Patterns Explained

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Cup and Handle vs Rounded Top – Forex Candlestick Patterns Explained

🏆 Cup and Handle Pattern (Bullish)

Explanation: The Cup and Handle is a bullish continuation pattern that forms after an uptrend. It starts with a rounded bottom (the cup) followed by a small pullback (the handle). A breakout above the resistance line confirms a potential strong upward move.

  • ✅ Entry: After the breakout above resistance.
  • 🎯 Target: Equal to the depth of the cup.
  • 🛑 Stop-loss: Just below the handle.
Cup Handle Breakout

📉 Rounded Top Pattern (Bearish)

Explanation: The Rounded Top is a bearish reversal pattern that forms after a gradual uptrend. It shows weakening buying momentum and increasing selling pressure. A break below the support line signals a potential downward move.

  • ✅ Entry: After a confirmed break below support.
  • 🎯 Target: Equal to the height of the top.
  • 🛑 Stop-loss: Just above the last small peak.
Rounded Top Support Breakdown

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